Smallholder farmers, who are essential to Ethiopian agriculture, are losing over 70 percent of their produce to waste, driven by climate change and systemic challenges. A study by the Policy Studies Institute (PSI) reveals that despite improvements in production levels, a substantial portion of the harvest is wasted before reaching the market due to inadequate storage facilities and the effects of climate change.

Selamawit Gebreegziabher, a senior researcher at PSI, noted that data collected from 2,000 farmers indicates those in the Jimma Zone of Oromia and the Wolaita Zone of Southern Ethiopia are particularly vulnerable to unusual rainfall patterns and rising temperatures. Most respondents reported that climate change has directly and negatively affected their livelihoods. While farmers are attempting to adapt by harvesting rainwater and implementing soil conservation practices, the scale of the challenges they face far exceeds their efforts.

Among the households surveyed, 72.3 percent reported high post-harvest losses of maize in the control groups, while 65.1 percent in the treatment groups faced similar issues. These losses are largely attributed to traditional and inadequate storage systems, as well as fungal contamination known as “aflatoxin.” Additionally, Selamawit explained that since most sales occur at the village level through brokers, farmers have limited bargaining power over prices. Even with the existence of cooperatives, their role in strengthening the marketing chain remains underdeveloped.

The report emphasizes that these losses represent a significant barrier to achieving national food security and enhancing climate resilience. The study highlights that waste is exacerbated by unpredictable rainfall patterns and rising temperatures, with farmers expressing their vulnerability to extreme climate fluctuations. Most lack the technological capacity to adapt to these impacts.

Importantly, Biochar technology—beneficial for soil fertility and climate resilience—is almost entirely unknown among farmers. Less than 3 percent are aware of it, and even fewer utilize it, revealing a substantial gap in the dissemination of scientific advancements to grassroots levels. Researchers found that farmers often have to sell their produce to village brokers and traders instead of formal contracts, further diminishing their negotiating power.

Although farmers’ cooperatives exist, they have struggled to provide the expected market security due to operational and leadership challenges. The ACRFSE project, running until 2028, aims to focus on key crops such as soybeans, maize, and teff, with activities designed to enhance the financial and climate resilience of soybean and grain producers, as well as to strengthen cooperatives for better market access.

These findings were presented in a progress report for the research project titled “Accelerating Climate-Resilient Food Systems in Ethiopia (ACRFSE).” During the presentation, Selamawit emphasized that the project seeks to improve farmers’ lives not only by providing information but also by offering practical solutions like modern storage facilities and Biochar training. The study concludes that in Ethiopia’s fight against climate change, simply increasing production is insufficient; effectively protecting what is already produced is equally crucial.

For years, Ethiopia’s real estate sector—a multi-billion birr industry—has struggled with a lack of trust and inadequate legal frameworks. In response, the government is implementing an Escrow Account system aimed at securing home buyers’ funds.

This initiative is based on the recently ratified Real Estate Development and Immovable Property Marketing and Valuation Proclamation (No. 1357/2024). It seeks to restore trust and protect home buyers from exploitation by developers.

For the first time in Ethiopian history, real estate developers are legally barred from accessing funds deposited by buyers until specific construction stages, as outlined in their contracts, are verified. This measure is expected to stabilize a sector currently shaken by a 60% increase in construction material costs, effectively removing “briefcase developers”—those operating with little more than a plan—from the market.

Leaders of the Ethiopian Real Estate Developers Association (EREDA) report that high inflation and administrative hurdles have significantly impacted the sector in recent years. Distortions in the market, such as developers selling below market value, failing to deliver homes on time, and occasionally abandoning projects, have damaged public perception of the industry.

Alemayehu Ketema, Board Chairman of EREDA, emphasized that market instability and a pervasive “disease of mistrust” have hindered the sector’s growth. This has created a chilling effect, where developers fear buyers won’t pay, and buyers fear developers won’t build.

These comments were made during a press briefing about Ethiopia hosting the first Continental Real Estate Exhibition and the African Real Estate Society (AfRES) Regional Conference, set to take place in three weeks. Organized by EREDA and Doxa Events, the exhibition will be held in Addis Ababa from April 23–26, 2026.

During the briefing, the Chairman pointed out that some developers have undermined the market by selling below construction costs and failing to fulfill contracts. “By harming the market like a merchant who consumes his seed capital, the sector has been cooling down,” Alemayehu remarked, explaining that the new Escrow system aims to address this longstanding issue.

He also noted that the sector has been plagued by false advertisements and misleading pricing, pushing honest developers out of the market. To combat this, the new legal framework, drafted by the Ministry of Justice and approved by Parliament, mandates that real estate development requires a unique, independent license. Developers who violate this regulation face severe penalties, including license revocation.

Under previous practices, developers would collect 30% to 100% of payments before construction began, often diverting those funds to other ventures—this was a primary cause of project delays and buyer frustration. The Escrow system introduces a method where a neutral third party or the government oversees fund transfers. In this system, buyers’ money is held in a locked account and released in stages as construction progress is verified.

“Depositing money in an escrow account does not mean it is withheld from the developer,” Alemayehu clarified. “Instead, it facilitates a smoother process where the developer receives funds more quickly, the buyer makes systematic payments, and the builder adheres to established guidelines.”

Tomas Girmaye, the President of the Association, stated that efforts to regulate the sector through legislation have been ongoing for the past seven years. He confirmed that the proclamation has been drafted and the implementing regulations are now finalized after extensive discussions with the Ministry of Urban and Infrastructure.

Established 13 months ago, the Association has created a comprehensive five-year Strategic Roadmap. This plan was developed by analyzing the challenges faced in Ethiopian real estate over the last 25 years and comparing these issues to international—particularly African—experiences.

“For the past 25 years, the sector has operated without an adequate legal framework,” the Manager noted. “This has led to a significant erosion of public trust. Our roadmap aims to rectify this by introducing policy reforms and professional standards.”

The Association formulated the regulations through five to six consultative forums with the Ministry of Urban and Infrastructure. According to the Manager, the board members bring a collective 120 years of professional experience, ensuring that the new system is both practical and implementable.

Ethiopia is also enhancing its relationships with international institutions to maximize its real estate potential. Following a recent meeting of the African Real Estate Society in Nigeria, Ethiopia was elected as a member. The decision to host next year’s continental conference in Addis Ababa represents a significant recognition for the country.

Djibouti, emerging as a leader in logistics and the blue economy in its region, has officially inaugurated a new ship repair yard.

The ceremony took place on the eve of the national elections set for April 10, with President Ismaïl Omar Guelleh presiding. This facility is part of Djibouti’s expanding logistics operations.

Developed through a strategic partnership with Damen Shipyards, the Djibouti Ship Repair Yard (DSRY) features a floating dock. This project represents a significant milestone for the nation’s maritime and industrial development, financed by Invest International of the Netherlands, which contributed €107.5 million.

According to the Djibouti Ports and Free Zones Authority, the DSRY is the largest facility of its kind in the Red Sea and East Africa. It includes a floating dock measuring 217 meters long and 43 meters wide, capable of lifting 20,100 tonnes.

The complex is designed to accommodate a wide range of vessels, providing both preventive and corrective maintenance, supported by a combination of international and local expertise.

President Guelleh remarked, “The DSRY project has always been a national priority, given Djibouti’s strategic location at the entrance to the Bab el-Mandeb, one of the world’s busiest maritime routes.”

He added, “This geographic advantage places a responsibility on us to meet the needs of ships passing through the region—whether for dry docking or mechanical repairs.”

Hassan Houmed Ibrahim, Minister of Infrastructure and Equipment, highlighted the facility as “a strategic national asset that enhances port competitiveness, supports the blue economy, and strengthens Djibouti’s regional position.”

Aboubaker Omar Hadi, Chairman of the Djibouti Ports and Free Zones Authority, stressed the project’s role in solidifying Djibouti’s status as a key maritime hub, in line with the vision for 2035.

Beyond its industrial significance, the authority noted that the project will create approximately 350 direct jobs and 1,400 indirect positions, while also fostering the development of skilled young talent in advanced technical fields.

Startups are encountering a series of licensing bottlenecks at various levels of government administration. Although the Ethiopian government’s ambitious “Homegrown Economic Reform” initiative has created new opportunities for Foreign Direct Investment (FDI), the startups expected to drive the country’s economic future are still entangled in overlapping and complex government licensing processes.

Despite the approval of Startup Proclamation No. 1396/2026 earlier this year, entrepreneurs report a significant gap between policy intentions and the on-the-ground reality, which remains burdened by excessive paperwork and administrative delays.

Industry experts identify a “Domino Effect” in the legal compliance process as a primary contributor to the issue. Currently, a startup cannot progress from Stage A to Stage B without obtaining a license; however, acquiring the Stage A license often requires a document that can only be obtained at Stage B. This creates a circular loop that traps the entire process.

Recent studies reveal that Ethiopian Small and Medium Enterprises (SMEs) are facing a financing gap of $4.2 billion. While these funds could potentially be accessed through the new National Credit Guarantee Fund, obtaining the necessary “Startup Identification” certificate has become challenging due to verification delays between institutions.

During the Invest in Ethiopia 2026 forum organized by the Ethiopian Investment Commission, industry leaders and tech founders emphasized the fragmented administrative landscape. This fragmentation forces businesses to navigate bureaucratic hurdles, creating a “domino impact” on their operations.

Unlike established large corporations, startups operate on limited budgets and tight timelines, making them particularly susceptible to a lack of institutional coordination. Kalkidan Arega, CEO of Toppan Security Ethiopia, noted that one government body often refuses to accept applications until a second or third office has granted approval.

Kalkidan stated, “We have to comply with and navigate the various regulations and administrative processes of different institutions. Unfortunately, after securing one permit, we often find ourselves waiting for approval at the next stage; one stage cannot be authorized without completing the previous one. As a startup, we face numerous challenges and must plan far in advance to meet our timelines.”

This “sequential licensing bottleneck” means that even with strategic support, it can take months for a business plan to be executed. Files shuffle between disconnected government tiers, including the Ministry of Innovation and Technology, the National Bank of Ethiopia, and regional land bureaus.

While Ethiopian Investment Holdings is establishing a fund in collaboration with the African Development Bank and the UNDP to support smaller players, its primary focus remains on large-scale investments. As a result, “middle-tier” startups—those that have outgrown microfinance but are too small for sovereign fund partnerships—are left to navigate the bureaucracy independently.

Although Ethiopian Investment Holdings provides “post-investment” services like customs clearance and government liaison, investors argue that such “hand-holding” should not be a prerequisite for market entry. Kalkidan added, “I want to see a single window that handles everything uniformly.” She noted that while efficiency has improved over the past two years, the structural independence of administrative processes continues to be a significant point of friction.