Climate High-Level Champion for COP29, Nigar Apadarai, calls for urgent alignment between youth skills, SME growth and climate ambition.

Across Africa, small businesses are already delivering climate solutions. They power homes, grow food, repair machinery, and manage waste. These are the kinds of enterprises that keep economies running; mostly informal, often climate-smart by necessity, and critical to everyday life. But they remain largely invisible in the ecosystem of climate policies, investment flows, and skills development required to shape the green economy.

At the same time, millions of young people are being trained for jobs that don’t yet exist. Across the continent, green skills programmes are preparing graduates for formal careers in sectors like green hydrogen or utility-scale renewables. These industries are vital to long-term climate goals, but in many countries, they are not yet creating employment at scale. Meanwhile, the businesses already hiring in climate-relevant sectors lack the support to grow.

The old saying that it is better to teach people to fish than to give them a fish has new relevance: the skills we teach will determine whether young people can seize the opportunities of a changing economy. The good news is that new delivery models — powered by the internet — mean skills can be rolled out faster and more affordably. 

This week, as governments, investors and campaigners gather in Addis Ababa for the Africa Climate Summit, that disconnect is in sharp focus. The transition cannot succeed unless it creates jobs and livelihoods.

Each year, up to 12 million young Africans enter the workforce, yet only 3 million formal jobs are created, according to the Africa Development Bank. At the same time, more than 72 million young people are not in education, employment or training, the ILO reports, while many others are stuck in training pathways that don’t match employer demand. The result is a green economy that looks viable on paper, but remains disconnected from the realities of Africa’s labour markets.

The potential is there. SMEs already generate up to 80% of employment in many African economies, according to the International Finance Corporation. And the ILO estimates that the green economy could create at least 3.3 million jobs across the continent by 2030. But that will only happen if market conditions improve and, crucially, if the systems that shape climate delivery, enterprise growth, and skills development are aligned.

Right now, they are not. Climate and economic planning remain siloed; policy frameworks often prioritie large-scale industries and multilateral investment; skills systems are designed without meaningful employer input; and access to finance remains limited, particularly for small businesses operating in informal or decentralised sectors.

Positively, in July, Liberia launched Africa’s first Youth Entrepreneurship Investment Bank, supported by the African Development Bank, to tackle youth unemployment. It aims to finance 30,000 youth-led businesses, create 120,000 jobs, and unlock $500m in lending – with nearly half expected in the green economy.

In South Africa, the Just Transition Pathways study maps what a net zero economy needs – including 6-12 gigawatts of new renewables each year. That evidence base helped shape the Just Energy Transition Skills for Employment programme, which links training with real market demand and supports SME participation in sectors like solar and green hydrogen. Incentives for small-scale solar, vital for clean energy access and SME job creation, are missing, but the groundwork for a more inclusive green economy is being laid.

Elsewhere, momentum is building but is uneven. In Kenya, where the informal sector drives over 80% of employment, most green skills programmes still target the formal economy. In Ghana and Nigeria, renewable energy SMEs face financing barriers even as demand grows. Modular, work-integrated training, which allows young people to earn while they learn, is gaining traction as a way to scale both skills and opportunities, but progress must accelerate. 

That’s why we need to refocus on delivery. First, by recognising SMEs as central to climate action and job creation. That means integrating them into national climate planning and removing policy barriers.

Second, by tying training to enterprise demand. Modular, job-embedded skills programmes, delivered through technical colleges and community-based providers, can help bridge the gap between training and employment. But they must be designed with employers, not just by administrators.

Third, by broadening the focus of climate finance. While large-scale projects remain essential, decentralised solutions and SME-led delivery offer faster returns in terms of both impact and employment. Investments in platforms, capacity-building, and supportive infrastructure are urgently needed.

This is the approach we are taking through the Climate-Proofing SMEs campaign, launched under my mandate as Climate High-Level Champion for COP29. So far it has engaged more than 45 collaborators and reached nearly 90 million SMEs in more than 100 countries. The campaign focuses on three priorities: helping large businesses strengthen climate-resilient supply chains by supporting SMEs to adopt climate action; mobilising finance from development banks, commercial leaders, and investors for SMEs in emerging economies; and equipping SMEs with practical tools to help them embed climate action into their operations.

Africa’s young people have the talent to lead the green economy. But they cannot do it alone. It’s time to build systems that align skills, finance and policy with the enterprises creating jobs today.

The moment to act is now.

Agriculture is undeniably the world’s most important industry. For Africa, it’s the bedrock of economic stability, accounting for 25% of the continent’s gross domestic product (GDP), 65% of its employment, and 75% of its domestic trade. This vital sector provides livelihoods to millions and has a direct impact on our daily lives.

Climate change, however, poses significant challenges. Africa’s 95% rain-fed cropland is vulnerable to heat, drought, pests, and floods, threatening food security. Yet, this urgency also presents a powerful opportunity. With 65% of the world’s uncultivated arable land and a vast labour force, Africa has immense potential for growth. **

However, to unlock this opportunity and build resilience, embracing climate-smart practices and advanced technologies is essential.

To unlock this opportunity and build resilience, it is essential to embrace climate-smart practices and advanced technologies. For example, regenerative agriculture plays a vital role in maintaining soil health, improving water retention, and sequestering carbon. This approach, combined with powerful tools like precision agriculture, drought-resistant seeds, solar-powered irrigation, and protected cultivation methods, will enable Africa to leapfrog toward a sustainable agricultural future.

The pivotal role of financial institutions in Africa’s agricultural growth

At a practical level, adopting climate-smart farming involves a financial dilemma: initial investments can temporarily lower yields or profitability, creating a barrier to adoption. This financial strain, combined with the capital-intensive nature of modern agriculture, necessitates financial partners with a deep understanding of the sector’s cyclical nature and unique risks.

A key differentiator for effective financial support lies in human capital and expertise. Financial institutions require experts with in-depth, empirical knowledge of the sector, who spend time on farms and walk the journey with customers to truly understand their unique challenges and aspirations.

Crucially, business and credit teams must have a nuanced understanding of external events, such as weather, volatile market prices, and tariffs. This, combined with credit specialists’ knowledge of the agricultural sector’s dynamic revenue and cost cycles, enables them to more precisely meet the sector’s demands and the individual needs of their clients.

For instance, recognising seasonal commodity price variations allows financial partners to structure financing that optimises stock management during advantageous buying cycles, enhancing operational efficiency and financial viability.

To ensure long-term sustainability, the focus should be on supporting the transition from adaptation to mitigation of climate risk across both commercial and small-scale farming. While their operational sizes and needs differ, both segments face a common set of significant challenges. The impacts of changing weather patterns, such as unpredictable rainfall and severe floods, directly affect yields and financial viability.

Empowering commercial farmers for future competitiveness

Commercial farmers require substantial, long-term capital for large-scale infrastructure investments, including extensive irrigation systems and sophisticated processing plants. They also bear the burden of navigating stringent international regulations, such as phytosanitary requirements and environmental stipulations for premium export destinations like the European Union, while managing complex supply chains that span vast territories.

For financial institutions, supporting the commercial journey should be underpinned by a focus on affordability. As large-scale climate-smart transitions are rarely possible all at once, Agribusinesses should adopt a phased approach that balances long-term sustainability with immediate affordability. For example, upgrading to precision planters, variable-rate fertiliser spreaders, or installing variable speed drives for irrigation pumps.

To incentivise commercial farming clients to adopt climate-smart practices, financial institutions can provide cheaper, more flexible debt with longer repayment terms. This is typically made possible through collaboration with Development Finance Institutions (DFIs) and concessional funding from entities such as the Green Climate Fund.

A distinguishing factor for leading financial institutions is their willingness to navigate the complexities of accessing these funds on behalf of their clients, making the journey easier and more affordable for their customers.

Building climate-smart ecosystems for small-scale farmers

For Africa’s small-scale farmers, our view is that a primary focus for financial institutions should be on partnerships. Given the fragmented nature of this segment, we have found that direct individual support is often less impactful than a value chain approach.

Our experience shows that best practices involve supporting seed companies at the forefront of technology. We finance the development of drought-resistant varieties and seeds for shorter or longer growing seasons, which are crucial for climate adaptation. This makes viable options widely accessible to all farmers, including small-scale producers, who can then select inputs best suited to their climatic conditions and market needs.

This support extends beyond seed companies, reaching their outgrowers with essential resources, such as climate-smart irrigation systems. This ensures consistent, high-quality seed production, which in turn secures a reliable supply chain for farmers of all sizes.

Similarly, we collaborate with leading poultry genetic companies, assisting them in establishing foundational infrastructure, such as grandparent farms and hatcheries, across Africa. By ensuring the reliable availability of high-quality day-old chicks with genetics that efficiently convert minimal feed into maximal protein, this enhances the entire poultry value chain’s viability and resilience.

This strategy reduces risks associated with disease outbreaks, such as avian flu, which can lead to border closures and supply chain disruptions. Strong local supply chains ensure quality chicks are consistently available, enabling both commercial and small-scale farmers to operate more profitably while maintaining a vital, affordable protein source.

Partnering for a sustainable agricultural future

Africa’s agricultural future holds immense potential. A comprehensive offering from financial institutions includes tailored solutions, unlocking concessional capital, investing in scalable value chain solutions, fostering strategic partnerships, and guiding climate-smart growth.

A long-term commitment to Agribusinesses ensures every step is built on financial viability and sustainability, benefiting Africa’s agricultural future for generations to come.

Leon Kotze is Head of Agribusiness at Business & Commercial Banking, Africa Regions & Offshore, Standard Bank

Market registration be achieved without an extension?

The Ethiopian capital market is on the cusp of a major milestone. By November 13, 2025, all share companies in Ethiopia—except those with fewer than 50 shareholders and under 100 million birrs capital—are required to register with the Ethiopian Capital Market Authority (ECMA). This deadline, set by Directive 1030/2024, was envisioned as a necessary step to make the capital market fully operational within one year of the directive’s issuance.

While the intention is commendable, the reality on the ground raises serious questions about whether this timeline is practical—or even possible—without risking the credibility of the registration process and hence the integrity of this emerging market itself.

The Capacity Challenge

As of today, ECMA has licensed only five securities transaction advisors and two investment banks to facilitate the registration process. According to the proclamation, share companies cannot self-register but must engage these licensed advisors to prepare registration statements and prospectuses.

The challenge is that most of these advisory firms are new, having received their licenses only in late 2024 or early 2025. They are still in the early stages of building internal capacity, recruiting staff, and establishing expertise. Preparing a registration statement and prospectus is a complex exercise requiring not only financial acumen but also valuation skills, legal analysis, and an understanding of global disclosure standards.

Even established advisory firms in mature markets take time to build capacity before handling dozens of clients simultaneously. In Ethiopia’s case, the situation is more pressing: hundreds of companies will soon rush to meet the November 2025 deadline, overwhelming these newly licensed firms. To manage the process and mitigate the burden, some advisors are already attempting to hire professionals from abroad, since the pool of local experts is thin. While this may temporarily fill the gap, it comes with cost implications that are ultimately passed on to companies, making compliance more expensive. If, however, the process is implemented in a phased manner, it would not only ease the immediate pressure but also allow local capacities to be gradually developed over time, reducing long-term dependence on foreign expertise.

Risk of Rushed Implementation

Even though the requirement for securities registration is envisioned since November 13, 2024, majorities of the companies are starting the process very lately as licensing of the advisors is also done lately.  The danger of pushing through such a large-scale registration exercise without adequate preparation is that quality may be compromised. If prospectuses and valuations are prepared hastily or without sufficient expertise, it could undermine investor confidence before the market even takes root.

Capital markets are highly sensitive. They thrive only when transparency, trust, and confidence are consistently demonstrated. Ethiopia cannot afford to start its market with weak disclosures or poorly prepared company registrations, as this would set an undesirable precedence.

We have already seen a warning sign. The recent Ethio Telecom IPO— which was the first in our recent capital market journey—was met with underwhelming demand, securing less than 13% subscription of the 10% floated axions of this 130-years flagship company. Many observers attribute this outcome to rushed preparation, lack of transparency, and weak communication with the public. Repeating such missteps in the wider registration process would be far costlier.

Why a Gradual, Phased Approach is Critical

Ethiopia’s capital market should be established step by step, with a focus on long-term credibility rather than short-term deadlines. Rushing risks undermining the very goals this reform is supposed to achieve: financial inclusion, innovation, and support for economic growth in a market that should be founded on integrity, trust and investor’s confidence.

A phased implementation, as is done in the adoption of International Financial Reporting Standards (IFRS), would allow companies to comply in stages, while giving regulators and advisors time to strengthen capacity. The market will only succeed if its foundations—disclosure standards, professional expertise, and regulatory credibility—are carefully laid.

Strategic Recommendations

To avoid a rushed and potentially damaging start, the following strategies should be considered:

1.  Build Advisory Capacity First

ECMA and other pertinent stakeholders should first work towards strengthening securities advisors, legal professionals, and auditors. Without their technical strength, quality registration cannot be ensured.

2.  Strengthen the Regulator’s Internal Capacity

ECMA itself is a newly organized body. Receiving, reviewing, and scrutinizing hundreds of registration statements and prospectuses in a short period will be overwhelming. The Authority needs time to establish strong internal systems, recruit skilled staff, and set up processes for quality review. A phased workload would help the regulator build its institutional capacity without compromising standards.

3.  Assess Company Readiness

Share companies should be supported in evaluating their readiness for registration. Many may need guidance on governance, financial reporting, and disclosure standards before filing.

4.  Adopt a Phased Timeline

Instead of one rigid deadline, companies should be classified into large, medium, and small, with staggered registration schedules. This approach—if managed effectively can balances urgency with practicality.

5.  Create a Support Task Force

A dedicated, multi-stakeholder task force should be established to provide technical support, troubleshoot bottlenecks, and ensure companies receive timely guidance.

6.  Learn from Global Best Practices

Ethiopia should adapt lessons from other emerging markets that successfully launched capital markets by prioritizing transparency, phased implementation, and investor education.

In summary, the Ethiopian capital market represents a bold step toward modernizing the financial system, expanding investment opportunities, and supporting inclusive economic growth. However, its success hinges on careful planning and realistic implementation.

A one-size-fits-all deadline risks undermining trust at the very start. By adopting a phased, capacity-driven approach, ECMA can ensure that Ethiopia’s capital market begins on a strong, credible foundation—earning the confidence of both domestic and international investors.

Tamrat Mengesha is a finance and investment professional holding the Chartered MCSI designation from the Chartered Institute for Securities & Investment, as well as ACCA and CMA qualifications.

This article examines how the Somali Regional State (with emphasis on Jigjiga City) levies and collects taxes and fees related to houses, newly constructed buildings, and transfers of urban land. It synthesizes: (a) the national legal framework and regional practice for urban land and property taxation; (b) the typical procedural steps (letters, registration, title/lease recognition) required after purchase of land or construction of houses; (c) the common tax/fee bases and timing of collection; and (d) key reforms introduced at the national level in 2024–2025 that are likely to affect Jigjiga’s practice. Where local (Jigjiga-specific) secondary regulations are unavailable in public sources, the article notes where regional administrations commonly exercise discretion and recommends practical compliance checks for owners.
Urban land and property taxation in Ethiopia is governed by an interplay of federal proclamations, regional statutes and city-level administrative rules. In practice, regional state revenue bureaus and city administrations (such as Jigjiga City Administration) implement taxes, collect fees, and issue the procedural documents (registration letters, tax clearance, receipts) that transfer and regularize land use rights and buildings. Because Ethiopia’s formal urban land regime is a mix of lease-hold (public land) systems and evolving property-tax instruments, both national reform processes (notably a new property-tax framework in 2024–2025) and region/city practices determine what an owner actually pays and when.
Two legal strands matter for Jigjiga

1. Urban land lease and administration frameworks. Historically Ethiopia has regulated urban land primarily through leasehold systems (e.g., Urban Land Lease Holding Proclamation No. 721/2011 and related policy instruments). These govern allocation of urban plots, lease terms, and the requirement to obtain formal lease/possession documents before development. Regional administrations operationalize registration, surveying and cadastre work in their cities.
2. Property tax reforms (2024–2025). At the federal level a Property-Tax Proclamation (drafted in 2024 and widely reported as approved/advanced into law in early 2025) establishes a taxable base and sets formulae for determining “taxable value” (commonly 25% of market or replacement value in the draft) and provides ranges for tax rates on land-rights and buildings. This national-level move—if implemented—creates a more uniform base for regional property taxation while leaving details of rates, assessment processes, and local collection modalities to implementing regulations and regional administrations.

Practically, owners in Jigjiga may face several different levies and fees at different moments:
• Land-use/lease fees (periodic lease payments or ground rent where leases apply). These are often charged according to lease contracts under regional/city lease rules.
• Property tax on buildings and improvements. Under the recent property-tax draft, taxable value for buildings is derived from market/replacement value (with a 25% taxable-value rule noted in the draft) and then multiplied by prescribed percentage rates. Regions/cities may set final tariffs within ranges given by federal law or secondary regulations.
• Transfer fees / registration charges when land or built property is transferred: administrative fees for issuing transfer letters, cadastral updates, and registration in the city/region system. These are typically one-off payments at the time of transfer.
• Development/permitting fees and inspection levies associated with building permits, inspections, and occupancy certificates. Cities charge these when owners apply for building permits or seek occupancy/utility connections.
Although local practice can vary, the following sequence is common across Ethiopian cities and observed in Somali Region reports; Jigjiga follows the same administrative logic:

1. Preliminary verification / purchase contract. Buyer and seller conclude a sale/purchase contract and assemble existing lease/title documents or customary-possession certifications.
2. Application for transfer / issuance of procedural letter. The buyer applies to the City/Region Land/Revenue Office for a formal “transfer letter” or registration note (this is the procedural law letter that recognizes a change in the registered user/leaseholder). The office verifies the contract, checks for encumbrances, and requests payment of applicable transfer fees and any outstanding lease arrears.
3. Cadastral survey/update. If required (for new subdivisions or when boundaries are unclear), the city arranges surveying and updates the parcel registry—owners pay survey and mapping fees.
4. Issuance of title/lease certificate and tax registration. Once payments and documentary checks are completed, the administration issues the formal transfer document (or updates the lease record) and issues a tax registration/assessment notice for recurring property/land taxes or a one-off transfer stamp/fee.
5. Permits for new building works. For new construction, the owner applies for building permits and pays permit, inspection, and connection fees in phases (plan approval, foundation, superstructure, occupancy). Cities tie some permissions to proof of tax registration.
   Because many peri-urban and informal transfers still occur outside formal channels, regional efforts (supported by World Bank and other projects) have emphasized regularizing informal holdings and digitizing payments to increase compliance.
   Public sources and the 2024 draft/proposed property-tax law indicate the following typical bases (note: numbers below are drawn from national drafts and observed regional practice; exact tariffs for Jigjiga are set by the city/regional council and may differ):
   • Taxable value rule: Draft Proclamation uses 25% of market or replacement value as a base for calculating taxable value. This is the “taxable value” from which percentage rates are applied. (See draft wording.)
   • Range of rates (illustrative): The draft suggests land-usage right charges between 0.2%–1% of taxable amount, and taxes on buildings/land improvements between 0.1%–1% of taxable value. These ranges imply that a building’s annual property tax burden depends on local percentage choices within this range and the assessed market/replacement value.
   • Transfer/registration fees: Usually fixed administrative fees plus percentage-based stamp duties vary by region; they are collected at transfer/registration. City administrations often supplement with cadastral and survey fees.
   Important practical note: Until regional implementing regulations and city tariff tables are published after a federal proclamation, owners in Jigjiga should consult the City Revenue Office to confirm the exact rate schedule and any transitional reliefs or exemptions (e.g., low-value residential relief, social housing exceptions).
   • Annual property taxes: Property taxes on buildings/land improvements—once assessed—are normally annual obligations, payable according to the schedule set by the regional/city revenue authority (commonly quarterly or annually with specified deadlines). The draft property tax establishes the basis and allows regional bodies to set collection schedules.
   • Lease payments / ground rent: These are charged according to lease contracts—some are annual, others on different agreed schedules. Arrears are commonly enforced before any transfer.
   • Transfer and registration fees: One-off payments at the moment of transfer/registration—collected before issuance of the official transfer letter.
   • Permit-related payments: Paid in phases as permits and inspections occur during building.
   City administrations in Somali Region (including Jigjiga) have been moving toward modernized payment channels (mobile/internet payments) and centralized revenue centers to reduce transaction costs and improve compliance — an initiative rolled out in 2024 in several sub-city administrations.
   • Federal property-tax instrument (draft/approved in early 2025): A national property tax framework reported in early 2025 establishes taxable-value concepts (the 25% rule) and sets rate ranges and formulas for consistent assessment across regions. If fully implemented and complemented by implementing regulations, this will standardize the taxable base while allowing regions to operationalize assessments and collections locally. Regions (including Somali Regional State) will need to pass implementing rules and tariff schedules consistent with the proclamation.
   • Digitization and modern collection systems (2024 onward): Several Somali Region localities, including Jigjiga’s sub-city administrations, introduced modernized taxation systems in 2024 (mobile/internet payment options, revenue center reforms) to simplify payment and increase coverage. This administrative modernization reduces in-person visits and can change the timing and methods by which taxes are enforced and receipts issued.
   Implication: Owners in Jigjiga should expect clearer nationally standardized assessment rules combined with city-level tariff schedules and a faster electronic payment process — but they should also expect a transition period while cadastral and valuation systems are aligned to the new property-tax base.
   • Common compliance problems: Informal transfers not registered with the city; missing cadastral information; outstanding lease arrears; and confusion over valuation methods. These issues can delay issuance of the procedural transfer letter and expose buyers to back-dated assessments.
   • Dispute resolution: Regional land tribunals, city revenue appeals boards or administrative review mechanisms typically handle valuation or assessment disputes; buyers should preserve contracts, receipts and any seller tax-clearance certificates.
   • Safeguards recommended for owners: Demand written tax-clearance from sellers, seek a formal transfer letter before occupying or building, and obtain a cadastral sketch and registration receipt. Use the city’s e-payment and official receipt systems where available to avoid informal payments.
   Public, machine-readable publication of Jigjiga-specific tariff tables and procedural templates is limited. Much of what buyers encounter depends on (a) the City Administration’s internal council decisions on rates and schedules, (b) Somali Regional implementing regulations following federal proclamations, and (c) local administrative practices (e.g., whether the city requires additional “clearance” from customary authorities). Researchers and practitioners should therefore treat national proclamations as the legal backbone while verifying the city’s revenue office notices and tariff schedules for concrete obligations.
6. Before signing, request seller’s tax-clearance and copies of existing lease/title documents.
7. Obtain a short legal opinion or visit the City Land/Revenue Office to confirm required transfer steps, expected fees, and timing.
8. Budget for: transfer fee + cadastral/survey fees + any outstanding lease arrears + building-permit fees + anticipated annual property tax (ask for an estimate from the revenue office).
9. Use official e-payment channels and obtain receipts; register property in the city tax registry immediately after transfer.
10. If confused about valuation or tariff, seek the revenue appeals procedure or a lawyer familiar with regional land practice.
    Jigjiga’s practice for collecting taxes on houses, new buildings, and transfers of land is shaped by both longstanding urban-land lease regimes and a new wave of national property-tax reform. The 2024 draft/proposed property tax law (and reports of approval in early 2025) creates a clearer taxable base (the 25% taxable-value concept) and rate ranges; however, implementation and precise rates remain the outcome of regional/city regulations and administrative modernization. Owners must therefore combine attention to the new national rules with verification of Jigjiga City Administration’s tariff tables, procedural letters, and e-payment systems to ensure full legal compliance and avoid dispute.

Mohamed is based in Jigjiga, Somali Region, He is Admas University Alumnus. Somaliland, Hargeisa Branch.He is an MBA holder, and wrote hundreds of scholarly articles, essays and conducted researches. He is small business owner and university lecturer. He can be reached at: He can be reached via Xareedmo45@gmail.com