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A partnership to save mothers and newborns

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Ethiopia’s efforts to prevent maternal and newborn deaths are receiving a US$90 million commitment from the Beginnings Fund through a five-year partnership with the Ministry of Health. Covering eight regions, 46 districts and 210 health facilities, the partnership aims to strengthen frontline care by investing in skilled health workers, essential medicines, equipment, infrastructure and referral systems. Working alongside government and other partners, the fund will support Ethiopia’s plans to prevent approximately 86,000 maternal and newborn deaths and stillbirths by 2031.

Leading the initiative is Alice Kang’ethe, founding Chief Executive Officer of the Beginnings Fund, a philanthropic organisation partnering with African governments to improve maternal and newborn survival. Kang’ethe brings two decades of experience at the Clinton Health Access Initiative, where she most recently served as global Chief Operating Officer, overseeing programmes in more than 40 countries across Africa, Asia and Latin America. Her previous leadership roles focused on maternal and child health, vaccine delivery, family planning and preventing mother-to-child transmission of HIV.

In this interview with Capital, Kang’ethe discusses the priorities behind the investment, how the partnership will work through Ethiopia’s existing health systems, and the targets that will measure its contribution to safer pregnancies, childbirth and newborn care. She also explains how collaborative philanthropy can help close critical funding gaps and sustain progress. Excerpts;

Capital: What are the main goals of the five-year partnership between the Ministry of Health and the Beginnings Fund?

Alice Kang’ethe: At its heart, this five-year partnership is about supporting the Government of Ethiopia’s goal to ensure women and newborns in Ethiopia access quality care when and where they need it. In turn, this will accelerate progress towards ending preventable maternal and newborn deaths and stillbirths. The partnership will reach eight regions, 46 districts, and 210 health facilities across Ethiopia.

Working alongside the Federal Ministry of Health and Regional Health Bureaus, the Beginnings Fund will invest in the people, products, and systems needed to deliver quality maternal and newborn care. Through this partnership, the Beginnings Fund will support Ethiopia’s existing plans to prevent approximately 86,000 maternal and newborn deaths and stillbirths by 2031, while helping strengthen the health systems for quality maternal and newborn care and to sustain progress over the long term.

Capital: Why was Ethiopia selected as a priority country for the Beginnings Fund’s maternal and newborn health investment?

Alice Kang’ethe: Ethiopia has demonstrated a strong commitment to improving maternal and newborn health, with clear national plans and significant Government investment already behind these priorities. This creates an important foundation for the Beginnings Fund to work alongside the Government and complement the progress already underway.

At the same time, women and newborns still face barriers to accessing the quality care they need, and there are areas where additional investment can make a significant difference. Working with the Federal Ministry of Health, we looked closely at maternal and newborn health data, existing investments, and gaps in support to understand where Beginnings Fund resources could have the greatest impact. That analysis identified priority districts where maternal and newborn deaths remain concentrated and where there are gaps in service coverage, workforce, and other health-system requirements for quality maternal and newborn care. That combination of strong Government leadership and investment, clear national priorities, and an opportunity for targeted, catalytic philanthropic funding to address critical gaps and scale up high-impact, evidence-based, cost-effective interventions is exactly the kind of partnership the Beginnings Fund was established to support.

Capital: The Fund is committing USD 90 million in catalytic financing. What specific gaps in maternal and newborn care will this funding address?

Alice Kang’ethe: Ethiopia has made important progress in maternal and newborn health, but there are gaps that need to be addressed to ensure all women and newborns can access quality care when they need it. These include shortages and uneven distribution of skilled health workers, availability of essential medicines and equipment, and referral and data systems that do not always support timely, coordinated care, particularly in rural and pastoralist areas. 

The USD 90 million investment has been designed around these gaps. It will support the scale-up of high-impact, evidence-based, cost-effective interventions that address the leading causes of maternal and newborn deaths; improve the availability of quality maternal and newborn health commodities and equipment; strengthen the number, skills, and distribution of the health workforce; and support improvements in maternal and newborn health infrastructure, data, and referral systems. 

Capital; How will the partnership complement Ethiopia’s existing national maternal, newborn and child health strategies rather than create parallel systems?

Alice Kang’ethe: This partnership has been designed from the outset to align with Ethiopia’s national priorities and work through existing government systems. The Federal Ministry of Health will lead implementation, working with Regional Health Bureaus and national institutions, and the investment will build on Ethiopia’s existing health sector and maternal and newborn health strategies. 

The same principle applies to financing. The Beginnings Fund’s USD 90 million investment complements existing and planned investment in maternal and newborn health, including up to USD 506 million in Government commitments and more than USD 220 million from other donors and partners. Our approach is to invest alongside governments and partners, directing catalytic philanthropic funding to where it can build on and strengthen existing efforts.

Capital: What measurable targets will be used to assess whether the partnership is reducing preventable maternal and newborn deaths over the five-year period?

Alice Kang’ethe: We have clear measures of success built into the investment from the beginning. By 2031, the partnership aims to contribute to a 15% reduction in maternal mortality, a 15.7% reduction in stillbirths, and a 26% reduction in neonatal mortality in Ethiopia. 

Behind these numbers, we also need to understand whether care is actually improving for women and newborns. We will also track the changes in care that will help us get there, including whether more women are accessing antenatal care earlier, whether proven maternal and newborn health interventions are reaching those who need them, and whether the quality of care is improving across the target facilities. We will work with the Federal Ministry of Health to strengthen and use existing national data systems to monitor progress, identify what is working, and adapt where needed.

Capital: What will the partnership mean in practice for the hospitals and health facilities it supports, particularly in strengthening the health workforce and ensuring health workers have the tools and systems they need to deliver quality care?

Alice Kang’ethe: For a health worker, having the right skills is only part of being able to provide quality care; they also need the right medicines, equipment, and systems around them. The investment will support the recruitment and deployment of 110 specialists, including obstetricians/gynaecologists and paediatricians, alongside specialised nurses, midwives, and anaesthetists. It will also support specialist training, mentorship, and professional development for the existing workforce.

For facilities, it means having more of what health workers need to provide that care: essential medicines and equipment, strengthened maternal and newborn units and operating theatres in selected facilities, and better data and referral systems. Bringing these elements – people, products, systems, and infrastructure – together is central to ensuring women and newborns can receive quality care when they need it, ultimately leading to better outcomes.

Capital: What is the role of collaborative philanthropy in the Beginnings Fund’s model, and how can this approach help improve maternal and newborn health across Africa? 

Alice Kang’ethe: The Beginnings Fund was established on the belief that we can achieve more by working together than any one organisation can alone. By bringing philanthropic funders together, we can pool funding, expertise, and partnerships behind a shared ambition: helping more women and newborns access quality care. Our founding donors include the Mohamed bin Zayed Foundation for Humanity, the Children’s Investment Fund Foundation, Delta Philanthropies, The ELMA Foundation, and the Gates Foundation, alongside support from other philanthropic funders.

What makes this approach important is that it allows us to combine resources and expertise to support larger, longer-term investments, rather than individual funders working separately. It also helps us take proven, cost-effective maternal and newborn health interventions to greater scale, supporting more women and newborns across Africa. Ultimately, collaborative philanthropy is about making our collective investment go further and achieving more together than we could individually.

IMF raises Sub-Saharan Africa growth forecast as risks mount

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Sub-Saharan Africa’s economy is projected to grow by 4.5 per cent in both 2026 and 2027, but rising inflation, declining aid and heavy debt-service costs leave the region vulnerable to further shocks, according to the International Monetary Fund.

The outlook was presented at the IMF’s African Department press briefing during the 2026 Annual Meetings in Bangkok, Thailand, where African Department Director Zeine Zeidane delivered introductory remarks.

The October Regional Economic Outlook Update, titled Resilient Growth, Clouded Outlook, raises the region’s 2026 growth forecast by 0.2 percentage points from April. The projection for 2027 is broadly unchanged. The IMF attributes the resilience to adjustments in global supply, favourable export earnings in some countries and earlier economic reforms.

However, steady regional growth conceals diverging experiences. Growth among oil exporters is expected to edge up from 4 per cent in 2025 to 4.1 per cent this year. Other resource-intensive economies are projected to maintain growth of 3.8 per cent, while non-resource-intensive economies are expected to slow from 6.4 per cent to 6 per cent.

The IMF projects median inflation across the region to rise from 3.4 per cent in 2025 to 4.3 per cent in 2026 and 5 per cent in 2027. These figures represent the middle country’s inflation rate, rather than an output-weighted regional average.

Fuel and transport costs are the immediate sources of pressure, while higher fertiliser and other imported-input costs are expected to feed into food prices with a delay. The fund warns that more expensive inputs could reduce planting and weaken subsequent harvests, particularly where farmers face scarce credit or depreciating currencies.

Average oil prices are projected at US$96 a barrel in 2026 before easing to US$87 in 2027. Fertiliser prices are expected to rise by 26 per cent this year compared with 2025, reflecting production losses and shipping disruptions.

Businesses have responded by changing suppliers and transport routes. Activity indicators across seven economies accounting for about half of regional output recovered in July after weakening in the second quarter.

Nevertheless, the IMF warns that supply adjustments and inventory releases cannot cushion disruptions indefinitely. Prolonged pressures would increasingly affect investment, employment and household consumption.

Earlier fiscal adjustments have improved public finances. Median public debt declined from 56.3 per cent of GDP in 2024 to 53 per cent in 2025 and is projected to fall to 51.7 per cent in 2026.

But interest payments continue to absorb a median of about 12 per cent of government revenue in the fund’s 2025–2027 estimates, restricting spending on services, infrastructure and responses to emergencies.

External support is also weakening. Following a decline of roughly one-quarter in 2025, bilateral aid to the region is projected to fall by a further 12 per cent in 2026, based on OECD estimates cited in the update.

Sovereign borrowers raised about US$12 billion through Eurobonds through September 2026. Although sovereign risk spreads have narrowed from their initial increase following the Middle East shock, higher global benchmark interest rates continue to make borrowing expensive.

The IMF cautions that renewed investor aversion to risk could quickly reverse improvements in financing conditions. Meanwhile, growing domestic-bank exposure to government debt is crowding out private credit and increasing banks’ sensitivity to public-finance pressures.

The report identifies foreign-exchange reforms and fuel-subsidy reductions in Ethiopia and Nigeria among the measures that have supported more stable economic conditions and a clearer basis for private investment.

It also notes progress in sovereign debt restructuring in Ethiopia, Ghana and Zambia. However, the fund acknowledges that exchange-rate and fuel-price adjustments have imposed immediate costs on households and businesses.

Ethiopia is cited as having differentiated temporary fuel subsidies by product and customer to contain costs. Across the region, however, only about one in seven announced fiscal relief measures was classified as targeted.

The IMF recommends targeted assistance over broad price subsidies. In an illustrative comparison covering 19 countries, generalised fuel-price smoothing could cost about 4 per cent of GDP, while transfers preserving the poorest 40 per cent of households’ benefit from that support would cost at most about 0.5 per cent. The comparison does not measure compensation for households’ entire loss from the shock.

El Niño could compound the region’s challenges through weaker harvests, hydropower shortages and damage to infrastructure.

Under an illustrative adverse scenario involving higher global agricultural prices and lower Southern African crop yields, IMF simulations show a median reduction in regional GDP growth of 0.5 percentage points and a median inflation increase of 2.6 percentage points in 2027. These are scenario results, not the baseline forecast.

The fund urges governments to protect vulnerable households and productive investment, save temporary commodity windfalls and strengthen debt management. Improving electricity supply, digital connectivity, skills, regional trade and the business environment remains essential to lifting productivity and making future shocks less costly.

FaydaVerse begins charging banks for digital ID verification

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FaydaVerse, Ethiopia’s national digital ID institution, has introduced fees for identity verification services used by banks and other organizations. The institution states these charges are essential to maintain its digital infrastructure and combat fraud, with no immediate plans for revision.

The charges for authentication services, which began in August 2026, reportedly range from five to 10 cents, according to Saminas Seifu, FaydaVerse’s Stakeholder Engagement Director.

“Digital infrastructure requires continuous growth and improvement, and identity authentication is a utility service,” Saminas explained to Capital. “We provide these services on a fee basis because a reasonable charge is necessary to sustain them.”

He clarified that the fees were determined after thorough research and consideration of international practices, aiming to cover basic operating costs. National ID registration, however, remains free for citizens.

Regarding potential adjustments to the charges, Saminas stated that the pricing process involved extensive research, management and board decisions, alongside an evaluation of regulatory and investment frameworks.

“We have no plans to adjust the prices at the moment,” he affirmed, adding that future decisions would prioritize building trust and accountability within the sector.

Previously, banks often requested and photocopied customer identification documents without verifying their authenticity. Saminas noted that banks could spend 10 to 20 birr per copy, a process that did not necessarily prevent identity fraud.

He emphasized that unreliable identity verification exposes financial institutions to fraud and can deter them from expanding lending or introducing new services. Conversely, verified digital identities empower banks to strengthen trust, mitigate fraud risks, and offer services like remote account opening.

The introduction of authentication fees coincides with the national ID system’s expanding reach. As of October 15, 2026, the program had registered 52.4 million people, with an average of 200,000 new registrations daily.

The system has processed approximately 200 million identity authentication operations and handles around two million verification requests daily. More than 14.5 million national ID credentials have been printed.

Addressing concerns that the charges might hinder financial inclusion, Saminas reiterated that citizens would continue to receive national IDs free of charge, with institutions bearing the cost for verification services.

He cited research indicating that 40 percent of Ethiopians lacked proof of identity, asserting that the program has enabled millions to obtain identification and access vital services, including banking.

The verification service is accessible to government institutions, private companies, and start-ups, with the applicable fee varying based on the specific service requested.

Saminas added that the system employs one-time passwords (OTPs) for verification, adhering to the Personal Data Protection Act. It also meticulously records which institutions access information, the data they request, and the duration of access.

The institution recently rebranded from the National ID program to FaydaVerse, reflecting its expanded mandate beyond citizen registration and ID issuance.

Saminas explained that the program, initially conceived as a five-year project, has seen a growing demand from both domestic institutions and foreign countries for identity verification and broader digital public infrastructure services. The number of institutions seeking to collaborate has now reached 150.

FaydaVerse plans to broaden its services to include digital credentials, citizen wallets, digital signing, and infrastructure for public services.

International cooperation could encompass consultancy, system deployment, legal preparation, data center development, and technology procurement. Zambia and Mozambique are among the countries that have expressed interest in such partnerships.

According to data provided by FaydaVerse, Oromia leads in national ID registrations with 19.2 million, followed by Amhara with 8.3 million, and Addis Ababa with 8.1 million.

The data further indicates that men constitute 58.8 percent of registered individuals, while women account for 41.2 percent. Gambella has the lowest registration numbers, with approximately 28,300 people.

ERC aims for two-year completion of Awash–Kombolcha railway project

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The Ethiopian Railway Corporation (ERC) plans to complete the remaining construction of the Awash–Kombolcha–Woldiya–Hara Gebeya railway project within two years. This follows the resolution of a compensation dispute with Turkish contractor Yapı Merkezi.

A senior ERC official, who wished to remain anonymous, informed Capital that the corporation has budgeted and made arrangements for the remaining work. However, the official declined to disclose the allocated amount or the company selected for the undertaking.

In addition to completing unfinished sections, the ERC is also focused on repairing railway infrastructure damaged by conflict in northern Ethiopia and by earthquakes. Construction activities are reportedly underway in Kombolcha and Dessie.

The 392-kilometer railway project was initially awarded to Yapı Merkezi in August 2015, under a contract valued at $1.7 billion. The dispute between the contractor and the Ethiopian government stemmed from disagreements over contract performance, construction delays, payment issues, and damage to the company’s assets during the war in northern Ethiopia.

According to the ERC official, the four-year arbitration dispute in London concluded on September 23, 2026.

The arbitration ruling ordered Ethiopia to pay Yapı Merkezi $213.7 million in damages, which includes nine percent interest, along with $29.1 million in advance payments, as reported by Capital.

These damages reportedly comprise $67.4 million in unpaid amounts owed by the corporation, $76.7 million for construction delays, and $89.2 million for damage to the company’s assets during the war in northern Ethiopia.

Yapı Merkezi had initially sought over $1 billion in compensation from the Ethiopian government, while Ethiopia filed a counterclaim for $400 million, according to the ERC.

Negotiations were also held in Istanbul and Addis Ababa to resolve the dispute. Yapı Merkezi reportedly offered to settle for a lump sum payment of $500 million, with interest calculated at commercial bank rates, but this proposal was rejected.

A 27-member Ethiopian team of legal, financial, and engineering experts, led by Addis Ababa University law professor Tilahun Teshome, represented the country during the arbitration proceedings.

Yapı Merkezi had also named the Ministry of Finance and the Ministry of Transport and Logistics in the case, in addition to the ERC. The tribunal reportedly dismissed the claims against these two ministries, a decision expected to reduce the risk of Ethiopian government assets abroad being used to enforce the award.

Furthermore, the tribunal ordered Yapı Merkezi to transfer project vehicles and machinery to the ERC.

In a separate statement, Yapı Merkezi announced that it had been awarded $307 million in compensation in its dispute with the ERC.

When asked about the discrepancy between the figures announced by the contractor and those reported by the corporation, the ERC attributed it to differences in the interest calculation periods, rather than a fundamental disagreement with the ruling itself.

Both parties reportedly have 28 days from the decision’s issuance to appeal. However, sources familiar with the case informed Capital that neither the ERC nor Yapı Merkezi currently intends to appeal.

The planned two-year completion period marks the next phase of work on this railway project, which has been significantly impacted by construction delays, payment disputes, and infrastructure damage.