Moroccan culinary art was honored on Saturday July 12, in Addis Ababa during an evening held on the initiative of the Kingdom’s Embassy in Ethiopia.
The evening treated guests, including members of the Ethiopian government and parliament, diplomats accredited in Addis Ababa, religious leaders and representatives of international organizations, to the flavors and multiple facets of the Kingdom’s culinary art.
Speaking at the event, Morocco’s ambassador to Ethiopia and Djibouti Nezha Alaoui M’Hammdi stressed that the evening, which brought to a close a gastronomic week organized by the embassy, was an opportunity for guests to discover Morocco’s heritage, which reflects the country’s cultural diversity.
Moroccan gastronomy draws its uniqueness from the fusion and blend of Berber, Arab, Andalusian and Mediterranean influences over centuries with other cultures, she said, noting that Ethiopian culinary traditions intersects with Morocco’s flavorful cuisine.
Moroccan and Ethiopian cuisines can be considered among the oldest and most delicious worldwide, as well as the most varied in flavor and imbued with hospitality, the diplomat added.
For their part, guests underlined the importance of this event, which brought together communities from different backgrounds to share more than a simple culinary experience: to share traditions and a heritage rooted in time.
As Africa’s economies strive to recover and grow following a series of unprecedented global shocks, the continent finds itself grappling with mounting debt pressures that threaten both development gains and future prospects. Rising external debt, persistent inflation, geopolitical instabilities, shrinking aid, and protectionist trade policies are converging to impose extraordinary fiscal strains on many countries. These factors demand urgent and coordinated responses to safeguard Africa’s economic resilience and inclusive growth.
The latest assessments reveal a sobering reality: African public debt has reached levels unseen in over a decade. Aggregate debt-to-GDP ratios hover around 62%, with many countries surpassing the 60% threshold widely considered a marker of elevated risk. A significant number are officially labeled as being in or facing debt distress. External borrowing now totals hundreds of billions of dollars, with servicing costs consuming an ever-larger share of national budgets. This situation is sapping resources away from vital investments in healthcare, education, infrastructure, and climate adaptation precisely when they are most needed.
A key dimension of this challenge is the rapid transition in Africa’s debt profile over recent years. While multilateral concessional loans once dominated, commercial borrowing and bonds have surged, carrying higher costs and shorter maturities. More creditors now hail from diverse sources, including private bond markets and emerging bilateral lenders, complicating debt management and restructuring efforts. Currency depreciation and inflationary pressures, fueling higher debt servicing bills, further worsen fiscal balances.
In addition to these fiscal pressures, broader geopolitical and economic uncertainties loom large. Ongoing conflicts in some regions exacerbate instability, disrupt trade and production, and divert resources toward security spending. Simultaneously, declining official development assistance—already reduced to historically low ratios compared to gross national income—compounds financing gaps. Major donors’ further aid cuts, driven by their own domestic fiscal constraints and shifting priorities, place greater emphasis on Africa’s own capacity to mobilize domestic resources effectively.
Trade challenges also threaten to undermine recovery and job creation. Protectionist tariffs and policies from developed economies reduce market access, putting at risk export volumes, manufacturing prospects, and the fragile progress made under continental initiatives such as the African Continental Free Trade Area (AfCFTA). The ripple effects extend beyond exports to impact industrial jobs, supply chains, and Africa’s role in global economic governance.
Amid this complex landscape, Africa’s fiscal authorities face a daunting balancing act. There is an urgent need to stabilize budgets and restore debt sustainability while bolstering growth-enhancing investments and economic diversification. Strengthening data systems and domestic tax mobilization capabilities is paramount. Empirical evidence and coherent policy analysis must underpin negotiations with creditors and the crafting of prudent fiscal reforms.
Recent efforts at the regional level underscore this imperative. Institutions such as the Economic Commission for Africa have been collaborating with governments to support property tax reforms, transfer pricing audits, customs modernization, and AfCFTA implementation. These technical steps are critical, yet they must translate into political leverage: a coherent, unified African voice in international forums that advocates for a reformed global financial architecture tailored to the continent’s realities.
One illustrative example is a populous East African nation navigating these very challenges. The country experiences high external debt levels and recent episodes of debt distress; it faces currency depreciation, inflationary spikes, and pressure on public spending. While continuing to borrow extensively to support infrastructure and social programs, it confronts a tightening external financing environment and volatile global markets. The government’s ability to expand domestic resource mobilization through improved taxation and economic diversification has become critical to sustaining growth and fiscal health.
This example reflects broader continental dynamics: the need for financial discipline must be matched by bold reforms that unlock private investment, foster entrepreneurship, and deepen intraregional trade. Addressing informal economic sectors, enhancing governance, and investing in human capital are equally essential to strengthening resilience.
Moreover, calls for reform of international financial systems are gaining traction. African policymakers and stakeholders urge greater debt relief flexibilities, reallocation of special drawing rights, and redesign of credit facilities to ensure affordable, sustainable financing. The global community’s support in these areas will be crucial to avoid deeper crises.
Africa’s current moment is thus one of high stakes and opportunity. Effectively managing rising debt and external vulnerabilities requires unity of purpose among African states, regional cooperation, enhanced policy coherence, and strategic partnerships. By embracing data-driven decision-making and reinforcing domestic fiscal capacities, the continent can navigate these headwinds and harness its demographic and economic potential for inclusive development.
Stagnation or fragmentation would risk reversing decades of progress against poverty and inequality. In contrast, a calibrated, forward-looking approach to debt and economic governance can transform constraints into catalysts for resilient growth and sustainable prosperity for millions across the continent.
As Ethiopia’s digital payments landscape undergoes rapid transformation, the issue of financial security and risk management has risen to the forefront for banks, fintechs, and regulators alike. At the heart of this evolving ecosystem stands Basil Kithinji, Director of Risk for Visa East Africa. Renowned for his expertise in building resilient digital payment systems, Kithinji leads regional initiatives to combat fraud, bolster cybersecurity, and foster collaboration among key industry players.
Recently, he was in Addis Ababa to spearhead a Visa-led risk management training for Ethiopian financial institutions—an event described as both timely and essential as the sector accelerates its digital transition. Beyond the classroom, Kithinji is a familiar voice in public forums and industry studies, championing the role of risk management as a key driver for consumer trust and sustainable growth.
In this exclusive interview with Capital, Kithinji discusses the most pressing risk management challenges facing Ethiopian banks and fintechs, practical strategies for building resilience, and the importance of collaboration and capacity building. He also shares insights into how Visa is supporting ongoing improvements in digital payment security and offers advice for institutions just beginning their risk management journeys.
Capital: Can you provide an overview of the key objectives and focus areas of the risk management training you conducted for financial institutions?
Basil Kithinji: The training, hosted by Visa in Addis Ababa, was a carefully curated one-day event designed to equip Ethiopian financial institutions with the necessary tools and insights to navigate the shifting dynamics of the digital payments ecosystem. The program focused on enhancing operational excellence across risk, compliance, and digital banking, while also promoting practical risk assessment and mitigation strategies. A key emphasis was placed on encouraging collaboration and peer learning among banks, fintechs, and digital banking teams. Ultimately, the training aimed to promote resilience and inclusion within Ethiopia’s growing digital economy.
Capital: What are the most pressing risk management challenges currently facing Ethiopian banks and fintech companies in the digital payments space?
Kithinji: Ethiopian banks and fintechs are operating in an increasingly complex risk environment. One of the most urgent challenges is the rise of cybersecurity threats, which continue to escalate as digital adoption accelerates, often without corresponding advances in defense mechanisms. Fraud and identity theft also remain prevalent, largely due to weak authentication systems and limited public awareness. Navigating regulatory compliance presents another layer of complexity, particularly for emerging fintechs that are grappling with the evolving guidelines of the National Bank of Ethiopia. Additionally, many institutions suffer from operational silos that obstruct cross-functional risk visibility and slow down responses. Infrastructure gaps, especially in rural areas, further complicate the delivery of reliable digital financial services.
Capital: How does effective risk management contribute to building trust and fostering growth in Ethiopia’s digital payment ecosystem?
Kithinji: Effective risk management plays a far more strategic role than simply meeting compliance requirements. It lays the foundation for consumer trust by ensuring that transactions are secure and systems are reliable. When customers believe in the integrity of digital payment platforms, adoption increases, which in turn drives financial inclusion. Moreover, sound risk frameworks reduce uncertainty, making the space more appealing for innovation, investment, and long-term growth. By aligning operations with regulatory expectations, financial institutions also ensure sustainability and build stronger relationships with stakeholders.
Capital: What practical strategies or tools did you introduce during the training that participants found particularly valuable?
Kithinji: Participants engaged with a range of tools and strategies that had immediate relevance to their operations. Case studies based on real-world fraud scenarios and cyber incident responses offered practical insights, while interactive risk mapping exercises helped attendees identify vulnerabilities within their digital channels. Scenario planning was introduced to help institutions anticipate emerging threats such as AI-driven fraud. Perhaps most impactful was the peer-to-peer knowledge exchange that allowed institutions to benchmark practices and learn from each other’s experiences, making the learning deeply contextual and actionable.
Capital: How do you tailor risk management approaches to address the unique regulatory and operational environment in Ethiopia?
Kithinji: Visa tailored the training content to closely reflect Ethiopia’s unique regulatory and operational realities. This included aligning with local regulatory expectations—particularly the risk governance frameworks mandated by the National Bank of Ethiopia—as well as accounting for infrastructure limitations and the varying levels of digital literacy across the country. The training also addressed the growing influence of mobile money platforms like Telebirr and M-Pesa, which bring their own set of risk considerations. Importantly, the content was adapted to resonate with Ethiopia’s institutional culture, ensuring that the strategies presented were both realistic and implementable.
Capital: In your experience, how prepared are financial institutions to manage emerging risks such as cyber threats and fraud in digital payments?
Kithinji: There is a clear divide in preparedness across institutions. Larger banks have begun investing in the necessary infrastructure and frameworks to address these emerging risks, but many other institutions are still in the early stages of development. Cyber resilience remains an area of concern, as does the implementation of real-time fraud monitoring systems. The training revealed a pressing need for ongoing capacity building, particularly in terms of workforce development and investment in relevant technologies. Raising digital risk awareness among staff remains a foundational challenge that must be addressed to close the readiness gap.
Capital: What role does collaboration among financial institutions, regulators, and technology providers play in strengthening risk management frameworks?
Kithinji: Collaboration is absolutely critical in today’s digital risk landscape. Stronger risk management frameworks are often built through shared knowledge and coordinated efforts across the ecosystem. Banks, fintechs, regulators, and technology providers must work together to share threat intelligence, co-develop secure technologies, and support joint innovation initiatives such as secure APIs and interoperability platforms. Visa continues to play a vital role in fostering these connections, serving as a trusted partner that facilitates open dialogue and ecosystem-wide alignment.
Capital: How does Visa support ongoing capacity building and knowledge sharing beyond this training event to ensure sustained improvements in risk management?
Kithinji: Visa’s commitment to risk management in Ethiopia extends well beyond a single training session. The company provides ongoing educational opportunities through webinars, training programs, and access to global best practices. Institutions are also supported with risk management toolkits, strategic partnerships, and mentorship programs designed to build long-term capacity. This sustained engagement ensures that the learnings from the training are reinforced and translated into operational improvements over time.
Capital: What are the critical next steps for Ethiopian financial institutions to further enhance their risk management capabilities in the evolving digital economy?
Kithinji: To maintain momentum, Ethiopian financial institutions need to prioritize investments in cybersecurity infrastructure and human capital. Building integrated risk management systems that span both traditional and digital channels will be crucial. In parallel, institutions must focus on educating their customer base to reduce fraud risks associated with low awareness. Equally important is continued engagement with global partners like Visa, which can provide expertise, resources, and strategic guidance to help institutions remain ahead of emerging risks.
Capital: How do you see the risk management landscape evolving in Ethiopia and the broader East African region over the next five years?
Kithinji: Looking ahead, the risk management landscape in Ethiopia and East Africa is poised for transformation. Regulatory frameworks are expected to become more sophisticated and harmonized across the region, fostering greater alignment and compliance. There will likely be increased adoption of artificial intelligence and machine learning in fraud detection and risk monitoring. Digital identity systems are also set to expand, which will significantly reduce impersonation and identity fraud. Furthermore, regional collaboration on cross-border payment security will become more critical as financial ecosystems become increasingly interconnected.
Capital: What advice would you give to financial institutions just beginning to develop or strengthen their risk management practices in digital payments?
Kithinji: For institutions at the start of their risk management journey, the first step is conducting a thorough risk assessment tailored to their digital services and operating context. Building a strong governance structure with clear responsibilities is essential. Institutions should invest in ongoing training for their staff and foster a culture of awareness and accountability. Partnering with experienced industry players like Visa can provide valuable direction and support. Above all, financial institutions should adopt a proactive and continuous approach—risk management is not a one-time effort, but a dynamic and evolving process.
