In a significant development, the inaugural conference of the Ethiopian Family Business Forum (EFBF) has shed light on the critical challenges faced by family businesses in Ethiopia. The conference, held under the theme “Passing the Torch; Sustaining Success in Ethiopian Family Business,” highlighted the importance of these enterprises in the country’s economy and the need for support to ensure their growth and success.

Family businesses in Ethiopia, known as Ethiopian Family Businesses (EFBs), are a significant contributor to the country’s economic growth. However, they face numerous challenges, including weak governance structures, lack of formal succession planning, and inadequate talent management practices.

Solomon Gizaw, the Chairman and CEO of HST Consulting, emphasized that one of the most critical challenges in family businesses is transition planning. This involves preparing leadership and ownership in advance for the seamless transfer of leadership from one generation to the next. He stated, “It is no exaggeration to say that family businesses are the pillars of our economy that foster entrepreneurship, resilience and motivation to innovate.”

The EFBF was established to address the importance of family businesses in the economy and support their growth. In Ethiopia, these enterprises not only contribute significantly to GDP but also play a vital role in job creation and community development. The forum is now formally registered and is currently supported by the customer sector and professional services in HST Consulting.

According to Solomon, the purpose of the EFBF is to serve as a platform for the exchange of knowledge and experience for current and future family business owners. The conference featured a great group of speakers with a wealth of experience and knowledge, engaging in extensive discussions on the main topics of family business management.

The establishment of the EFBF marks a significant step in recognizing the importance of family businesses in Ethiopia’s economy. By providing a platform for knowledge sharing and addressing the challenges faced by these enterprises, the forum aims to help EFBs grow and sustain their success.

As family businesses continue to play a crucial role in Ethiopia’s economic landscape, addressing the challenges of weak governance structures, succession planning, and talent management will be essential for their long-term success. The EFBF’s efforts to support and empower these enterprises are commendable and will undoubtedly contribute to the overall economic development of the country.

In its eighth annual Goalkeepers report, the Bill & Melinda Gates Foundation has urgently called on world leaders to increase global health spending in areas where it is most needed. The report emphasizes the critical importance of boosting children’s health and nutrition, particularly in light of the escalating global climate crisis.

Titled “A Race to Nourish a Warming World,” the report warns that without immediate global action, climate change could condemn an additional 40 million children to stunting and 28 million more to wasting between 2024 and 2050. The foundation argues that scaling up effective solutions now can prevent these dire outcomes while simultaneously building resilience to climate change and fostering essential economic growth.

According to the World Health Organization, an estimated 148 million children currently experience stunting—a condition that impairs physical and mental development—while 45 million suffer from wasting, which leaves them weak and emaciated. These conditions significantly increase the risk of developmental delays and mortality, representing the most severe forms of chronic and acute malnutrition.

Despite these alarming statistics, the report highlights a troubling trend: the total share of foreign aid directed towards Africa has decreased over the past decade. In 2010, African countries received 40% of foreign aid; this figure has now plummeted to just 25%, the lowest percentage in 20 years. This decline is particularly concerning given that more than half of all child deaths occur in sub-Saharan Africa, leaving millions at risk of preventable diseases.

Bill Gates, co-chair of the Bill & Melinda Gates Foundation, expressed his concern about the current global landscape, stating, “Today, the world is contending with more challenges than at any point in my adult life: inflation, debt, new wars. Unfortunately, aid isn’t keeping pace with these needs, particularly in the places that need it most.” He believes that global health can still achieve a resurgence even amidst competing challenges for government budgets.

Gates described malnutrition as “the world’s worst child health crisis,” exacerbated by climate change. He urged for sustained global health funding and immediate action to combat child malnutrition through support for the Child Nutrition Fund—a new platform aimed at coordinating donor financing for nutrition initiatives. He also called on governments to fully fund established institutions like Gavi, the Vaccine Alliance, and the Global Fund to Fight AIDS, Tuberculosis and Malaria.

“If we do these three things,” Gates asserted, “we won’t just usher in a new global health boom and save millions of lives—we’ll also prove that humanity can still rise to meet our greatest challenges.”

The report further outlines the catastrophic economic costs associated with malnutrition. According to the World Bank, undernutrition results in an annual productivity loss of approximately $3 trillion globally. In low-income countries, this loss can account for 3% to 16% (or more) of GDP—equating to a permanent recession at 2008 levels each year.

Gates emphasized that investing in nutrition is crucial for combating climate change’s impacts. “Malnutrition makes every forward step our species wants to take heavier and harder,” he stated. Conversely, solving malnutrition could facilitate progress on various fronts: reducing extreme poverty, enhancing vaccine effectiveness, and decreasing mortality rates from deadly diseases like malaria and pneumonia.

The Gates Foundation’s report serves as a clarion call for immediate action from global leaders to prioritize health spending targeted at combating malnutrition and its associated challenges. By addressing these issues head-on, there is hope not only for saving millions of children’s lives but also for fostering a healthier future for generations to come.

EthSwitch S.C. has announced the election of Solomon Desta, the Deputy Governor of the National Bank of Ethiopia, as the new Chairman of its Board of Directors. This appointment marks a significant step for EthSwitch as it continues to enhance its strategic direction in Ethiopia’s digital payment landscape.

Yilebes Addis, CEO of EthSwitch, expressed confidence in the newly elected board members during the announcement. He stated, “The members of the Board of Directors have been setting the strategic direction of our institution and carrying out critical activities to take it to a higher level, formulating various policies and guidelines, taking advantage of the opportunities available at the time and providing solutions to the challenges it faces.”

The contributions made by the Board of Directors have laid a solid foundation for EthSwitch’s activities and will inform the new strategies that are expected to be developed in the coming years. The board’s collective expertise is crucial as EthSwitch aims to streamline and enhance digital payment systems across Ethiopia.

Solomon Desta emphasized the importance of collaboration among board members, highlighting their collective knowledge and experience in implementing Ethiopia’s national digital payment strategy and financial inclusion initiatives. “We believe that the Digital Ethiopia 2025 strategy and EthSwitch’s initiatives will significantly contribute to the country’s economic growth,” he added.

EthSwitch has elected a total of 12 members to its Board of Directors, which includes representatives from various financial institutions such as ZamZam Bank (Melika Bedri), Oromia Bank (Teferi Mekonnen), Dashen Bank (Asfaw Alemu), and Zemen Bank (Dereje Zebene). This diverse representation underscores EthSwitch’s commitment to fostering collaboration within Ethiopia’s banking sector.