The global economy is facing a fresh test as trade, food and financial shocks spread, with developing economies expected to bear the heaviest burden, according to a new UN Trade and Development report released on May 19, 2026. The report says rising geopolitical tensions, higher energy prices and tighter financing conditions are weakening growth prospects and adding new pressure to inflation and food security.

UNCTAD projects global growth will slow from 2.9 percent in 2025 to 2.6 percent in 2026, as higher fuel costs, transport disruptions and market volatility weigh on investment and demand. Trade remains resilient for now, but the agency warns that momentum is fading as uncertainty begins to reshape supply chains and business decisions.

The report says developing economies are especially exposed because they face higher bills for fuel, food and fertilizers at the same time as they deal with currency pressure, tighter borrowing conditions and weaker investor sentiment. It warns that food security is increasingly becoming not only a price issue but also a financial stability concern, particularly for governments with limited fiscal space.

Higher energy prices are also feeding through to food inflation. UNCTAD says fertilizer costs are rising and that volatility in global food trading systems could deepen pressure on low-income countries already struggling with debt and weak public finances.

The report highlights the growing risks to financial stability, saying tighter conditions could amplify debt vulnerabilities in developing countries. It warns that renewed capital-flow pressure and higher debt-service costs could crowd out spending on health, education and social protection.

UNCTAD says renewable energy is becoming more cost-competitive and strategically important because it can reduce exposure to fossil-fuel shocks. The agency calls for stronger international cooperation, more predictable trade conditions, financial safeguards for developing economies and faster investment in affordable clean energy.

The report also places the current shock in a wider context of global economic fragility. It says geopolitical risks are now becoming the dominant source of instability, while weaker productivity growth, fragmented trade and uneven access to capital and technology are making the recovery more uneven across regions.

Ethio Telecom has urged the 45,000 verified shareholders from its first public share sale to open trading accounts with licensed brokers or investment banks as the company begins trading on the Ethiopian Securities Exchange.

Chief Executive Officer Frehiwot Tamiru said the next step for investors is to open accounts with intermediaries licensed by the Ethiopian Capital Market Authority, warning that limited public understanding of capital market procedures could slow participation in trading.

The move marks a major transition for the state-owned telecom giant, which has begun shifting from full government ownership toward public shareholding. Ethio Telecom said the first phase of the share sale attracted strong interest, with 47,377 potential investors registering and about 10.7 million shares sold, raising 3.2 billion birr.

After the sale period closed, the company worked with regulators on data cleaning, reconciliation and know-your-customer verification. It also completed dematerialization, converting paper-based ownership records into a secure digital system.

According to the company, 45,000 investors successfully passed the verification process and were confirmed as shareholders after the lot allocation was approved on 24 June 2025. Ethio Telecom said these investors now hold 10.1 million verified shares, valued at about 3 billion birr.

The company said 96 percent of registered applicants were successfully verified, while 3.4 percent failed to meet the final requirements. Among those excluded, 1,646 applicants did not attach their Fayda national ID information to their application forms.

Ethio Telecom said those applicants are not permanently excluded and may still be verified if they submit the missing information. It also said 248 applicants were found to be non-Ethiopian nationals, despite the original restriction limiting the 10 percent stake sale to Ethiopians. The company said it will refund the principal amounts and processing fees to those applicants, as well as to the 1,646 individuals who failed to provide national ID details.

Frehiwot said many investors were not yet trading their shares because they did not fully understand the process. She said shareholder participation now depends not only on Ethio Telecom but also on the wider capital market ecosystem, including brokers and investment banks.

The company said verified shareholders must now visit licensed capital market institutions to open trading accounts before they can buy or sell shares on the exchange. It added that this step is essential for the new market structure to function smoothly.

Ethio Telecom also said it will disclose its full annual performance and business results after the fiscal year ends. The report will first undergo external audit, a process expected to take about two months. The audited results are expected to be published around September on the company’s investor relations page.

That audit report will clear the way for Ethio Telecom’s first general assembly as a public company. Frehiwot said the company is discussing with the Ethiopian Capital Market Authority how to organize the meeting, given the difficulty of gathering all shareholders physically in one place.

Possible options under discussion include in-person participation, online access and proxy representation. The assembly is expected to play a key role in decisions on dividends and other corporate matters, based on board directives and shareholder resolutions.

Ethiopia has put in place a strong legal framework and ratified key international environmental conventions to regulate hazardous waste, but weak enforcement continues to undermine efforts to curb the growing threat, experts said.

The challenge was highlighted during a review of the study and design work for the country’s first central Hazardous Waste Treatment and Disposal Facility, attended by senior government officials, researchers and environmental experts.

Over the past two decades, Ethiopia has adopted several laws intended to protect human health and the environment from toxic substances. These include the Environmental Pollution Control Proclamation, the Environmental Impact Assessment Proclamation, the Solid Waste Management Proclamation and the Hazardous Waste Management and Disposal Control Proclamation. The country has also ratified the Basel, Rotterdam and Stockholm conventions, which govern the movement and management of hazardous chemicals and persistent organic pollutants.

Despite those measures, implementation remains weak, according to Amare Matebu, a lead researcher who presented an investigative report prepared by the Policy Studies Institute. He said the gap between policy and practice has turned hazardous waste management from an environmental issue into a governance problem.

Communities affected by pollution have submitted petitions seeking action, but the country’s limited monitoring capacity and lack of specialized domestic infrastructure have made it difficult for authorities to respond effectively. As a result, hazardous waste continues to accumulate in sectors ranging from agriculture and manufacturing to health care and education.

According to Firenesh Mekuria, deputy director general of the FDRE Environmental Protection Authority, Ethiopia imported 1.3 million tons of industrial chemicals in one recent fiscal year, nearly 4,200 tons of which had less than 18 months of shelf life remaining. Without strict inventory tracking and disposal controls, such chemicals quickly expire and become hazardous waste.

The country is also grappling with a legacy of obsolete and banned pesticides that have accumulated since the 1960s. Since 2008, Ethiopia has exported 6,787 tons of high-risk waste for safe destruction, at a cost of $35.14 million. However, at least 52 tons of expired pesticides are still being stored in poor conditions, including at the Kality warehouse.

The problem is not limited to chemicals. In the health sector, the absence of centralized treatment facilities has forced some large hospitals to burn hazardous medical waste in low-temperature incinerators or open pits, releasing toxic fumes into the air. In manufacturing, some factories discharge hazardous by-products into rivers or municipal landfills because they lack treatment systems. In the education sector, electronic waste and expired laboratory chemicals are also being stored unsafely.

To address the gap between legislation and reality, the Environmental Protection Authority and the Policy Studies Institute have spent the past 18 months developing the design for Ethiopia’s first fully engineered Hazardous Waste Treatment and Disposal Facility. The facility is planned for Gumbi Bordede woreda in West Hararghe Zone of Oromia and is expected to be developed in phases between 2019 and 2037 Ethiopian Calendar, with an estimated investment of between $105 million and $155 million.

The planned project is intended to give Ethiopia a centralized system for handling toxic waste and reduce the environmental and health risks created by the country’s current fragmented approach.

Ethiopia’s attempt to restructure its $1 billion Eurobond hit a fresh setback after negotiations with private bondholders ended without agreement, the Ministry of Finance said on Wednesday.

In a statement issued on 27 May 2026, the ministry said a restricted dialogue session held from 6 May to 27 May with the bondholders’ Ad Hoc Committee concluded without a deal, effectively closing the designated negotiation period. The talks were aimed at resolving the country’s default on the 6.625% bond that matured in 2024.

The ministry said the discussions were centered on finding terms that would satisfy the Comparability of Treatment principle set by the co-chairs of the Official Creditor Committee, while also keeping the restructuring within a market-based framework.

According to the ministry, an earlier agreement in principle reached on 12 January 2024 had included a Value Recovery Instrument, a mechanism designed to give creditors additional payments if Ethiopia’s macroeconomic performance improved. But the Official Creditor Committee later said the country’s wider economic conditions were not suitable for such a structure and that the proposal did not meet the comparability requirement.

Ethiopia then tabled a revised proposal that removed the VRI entirely. The ministry said the new terms were reviewed by the OCC co-chairs and found to comply with the principle of comparability of treatment.

Under the revised offer, Ethiopia proposed issuing $880 million in new bonds, representing a 12% haircut on the original principal. The new instrument would have matured on 15 July 2029 and carried an annual interest rate of 4.25%, payable twice a year on 15 January and 15 July.

The proposal also laid out a four-stage repayment plan for the principal: $180 million on 15 July 2026, another $180 million on 15 July 2027, $260 million on 15 July 2028 and a final $260 million on 15 July 2029.

In addition, the government offered a consent fee of 0.5% of the original 2024 bond value and proposed clearing $99.375 million in past-due interest at settlement. That amount covered three missed coupon payments between December 2023 and December 2024.

Despite those concessions, the Ad Hoc Committee rejected the revised proposal within the negotiation window, bringing the latest round of talks to an end without agreement.

The Ministry of Finance said it was disappointed by the outcome, but stressed that Ethiopia remains committed to honoring its debt obligations. It added that the government would continue seeking a market-based solution for the 2024 bond that complies with the Official Creditor Committee’s comparability principle and aligns with the commitments under the International Monetary Fund program.