In a landmark diplomatic move, France will formally recognize the State of Palestine during the upcoming United Nations General Assembly in New York on September 22, 2025. This historic decision is part of a broader effort to reinforce the two-state solution and foster lasting peace in the Middle East.

The announcement was made during a high-level international conference co-chaired by France and Saudi Arabia, culminating in the adoption of the “New York Declaration on a Peaceful Solution to the Palestinian Question.” This declaration, supported by a significant majority of UN member countries, outlines a comprehensive roadmap to end the conflict in Gaza, support the Palestinian Authority, and establish a functional, independent Palestinian state alongside a secure Israel.

French Minister for Europe and Foreign Affairs Jean-Noël Barrot emphasized at the July 29 summit that the two-state solution is facing existential threats. He cited three main challenges: the October 7 Hamas attacks, Israel’s extended military campaign in Gaza, and the accelerated expansion of Israeli settlements in the West Bank. Barrot described France’s decision to recognize Palestine as a firm rejection of war, aiming to isolate Hamas and empower Palestinians committed to peace.

Central to France’s recognition is the historic commitment made by Palestinian Authority President Mahmoud Abbas in a letter to French President Emmanuel Macron. For the first time, Abbas publicly condemned the terrorist October 7 attacks, called for the immediate release of hostages, and pledged to disarm Hamas and remove it from Gaza’s governance. Abbas also promised presidential and legislative elections within a year and assured that the prospective Palestinian state would have no military forces.

The New York Declaration, endorsed by the UN General Assembly, unequivocally condemns any attacks on civilians by all parties, including Hamas and Israel. It demands an immediate and comprehensive ceasefire in Gaza, the release of hostages, and unobstructed humanitarian aid deliveries. The declaration also affirms that Gaza should be governed jointly by the Palestinian Authority and the West Bank.

France’s pledge to recognize Palestine has elicited divergent international reactions. The United States and Israel vehemently opposed the move. U.S. Secretary of State Marco Rubio described it as a “negligent decision” that “serves only Hamas propaganda,” while Israeli Prime Minister Benjamin Netanyahu condemned it as “promoting terrorism” and a threat to Israel’s existence.

Conversely, numerous countries, including Saudi Arabia—which co-chaired the New York conference—welcomed the decision as “historic.” Saudi Arabia praised France’s leadership and lauded countries like Spain, the West Bank, and Ireland that previously recognized Palestine, calling it a pivotal step toward peace in the region.

The declaration also calls on parties to counter violent extremist settlers and entities impeding the peace process. It proposes creating a regional security framework inspired by organizations such as ASEAN to foster stability through cooperation and regional integration.

As France prepares for its formal UN announcement, the global diplomatic community is closely watching. France’s recognition will mark the first major Western power and G7 nation to officially recognize Palestine, potentially encouraging other countries to follow suit.

According to a Politico report dated September 19, 2025, French President Emmanuel Macron is convening a meeting on the sidelines of the UN General Assembly to coordinate recognition efforts. At least six countries—Australia, Belgium, Canada, Malta, Portugal, and the United Kingdom—have committed to recognizing Palestine, signaling a possible shift in international alignments on this long-standing issue. France’s move to formally recognize Palestine represents a significant moment in Middle East diplomacy, reinforcing international support for a peaceful two-state solution amid ongoing conflict and humanitarian challenges

Ethiopia is grappling with the worst drought it has experienced in 70 years—an unprecedented climate crisis marked by extreme weather and a deepening food insecurity situation. The country, impacted by five consecutive failed rainy seasons, finds itself at a crossroads, balancing urgent humanitarian needs with a prominent role in continental climate diplomacy.

According to the recent “State of the African Environment 2025” report released in Addis Ababa, the Horn of Africa region, which includes Ethiopia, Somalia, and Kenya, suffered a historic drought in early 2023. This event was the most severe in seven decades, driven by prolonged rainfall deficits exacerbated by a strong El Niño in 2024, which also severely affected southern Africa.

The report, a joint production by New Delhi’s Down to Earth magazine and the Center for Science and the Environment, highlights that the period from 2021 to 2025 is the deadliest in Africa’s recent history regarding climate-related human casualties. Ethiopia has borne a substantial share of this burden, with effects rippling across its population and economy.

The drought’s impact on water availability is acute. Groundwater reserves for emergency use are rapidly depleting, while river flows have dwindled, and agricultural productivity has suffered greatly. Prolonged dry conditions have caused reduced crop yields and lower livestock milk production, particularly in the country’s mountainous regions.

Millions of Ethiopians are confronting dire shortages of food and drinking water. Rising temperatures compound the crisis. An analysis by Climate Central found that between December 2024 and February 2025, Ethiopia experienced 74 days of extremely high average daily temperatures, underscoring the severe influence of climate change.

Food security—a preexisting challenge—has worsened significantly. The World Food Security and Nutrition Report 2025 reveals that a large proportion of Ethiopians lack consistent access to sufficient nutritious food. Alarmingly, 37% of children under five suffered developmental disabilities linked to malnutrition in 2023. The report also warns of shrinking food baskets as African crop systems face unprecedented stress, with sharp declines in production anticipated in the near term.

Ethiopia’s mountainous regions, home to some of Africa’s highest populations outside Asia, face unique yet understudied climate challenges. In January 2025, a study published in Nature Climate Change uncovered a troubling reduction in fog—a vital water source for plants—in ten mountainous African locations, including Ethiopia’s Bale region. Farmers in these areas report worsening conditions: diminished river flows, crop and livestock yield reductions, increased soil erosion, rising plant and animal diseases, and deteriorating human health.

The broader implications for global food systems are dire. A global analysis published in March 2024 in Nature Food warns that nearly half of the world’s crop production in the Northern Hemisphere risks becoming unviable if global temperatures rise beyond 1.5°C, underscoring the urgency to contain climate change.

Despite these immense domestic challenges, Ethiopia is emerging as a leader in global and African climate diplomacy. The country hosted the second African Climate Summit (ACS-2) in Addis Ababa from September 8 to 10, 2025. Themed “Accelerating Global Climate Solutions: Financing for Resilient and Green Development in Africa,” the summit underscored Ethiopia’s dedication to positioning Africa at the forefront of global climate action.

At the summit, African leaders endorsed the Addis Ababa Declaration on Climate Change and Call to Action, reaffirming the continent’s commitment to sustainable development and climate resilience.

A flagship response from Ethiopia is the Green Footprint Initiative—a mass tree-planting campaign that has seen the distribution of over 32 billion seedlings across the country over the past five years. Impressively, the survival rate of these seedlings is approximately 90%, making the initiative a continental model for nature-based solutions and a cornerstone of Ethiopia’s Climate-Resilient Green Economy (CRGE) strategy.

The CRGE initiative is ambitious: it aims for Ethiopia to achieve middle-income status by 2025 while building a green economy and buffering itself from the impacts of climate change. Plans include generating electricity primarily from hydropower, supplemented by wind (20%) and geothermal (10%) renewable sources within the same timeframe.

However, Ethiopia’s environment and economic prospects are closely intertwined with broader regional stability. The World Bank estimates that countries grappling with conflict or instability, including Ethiopia, harbor a disproportionate share of the world’s poorest people and are particularly vulnerable to food insecurity.

Conflict and climate disasters often form a vicious cycle that severely erodes the population’s capacity to survive shocks. The United Nations High Commissioner for Refugees (UNHCR) highlights that three-quarters of the estimated 120 million forcibly displaced globally reside in countries most affected by climate change, Ethiopia among them. While confronting alarming food shortages, escalating displacement, and extreme weather, Ethiopia also demonstrates strong political will and leadership. Its national initiatives and active representation in international climate negotiations showcase a commitment to both mitigating and adapting to climate risks

On the eve of the 42nd International Civil Aviation Organization (ICAO) Assembly held in Montreal, global aviation leaders underscored the critical role Africa plays in advancing sustainable aviation and climate goals. The assembly, which convenes every three years, charts the work program and priorities of ICAO for the upcoming cycle, impacting 193 member states including numerous African nations.

Willie Walsh, Director General of the International Air Transport Association (IATA), highlighted the ongoing focus on accelerating environmental initiatives such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a worldwide framework to mitigate aviation emissions. Walsh noted that only one country to date has made available the necessary emissions units, urging greater participation from states globally to meet agreed climate commitments.

Africa’s unique position as both an emerging aviation market and a region vulnerable to climate change was discussed in the context of sustainable aviation fuel (SAF) development. SAF is expected to contribute a significant portion of global emissions reductions by 2050, but industry leaders acknowledged current production falls short of demand. Calls were made for increased incentives and policies to boost SAF production capacity, particularly in emerging markets including Africa.

Panelists stressed the importance of equitable access to supply and fair consideration of feedstocks for aviation fuel, recognizing the continent’s vast renewable resources as critical to future green aviation growth. However, technological and financial challenges remain barriers to scaling SAF production and implementation. Discussions also highlighted the environmental and economic benefits of supporting the transition toward cleaner aviation fuels and technologies across Africa. The assembly emphasized international collaboration to help African states build capacity, improve regulatory frameworks, and attract investment for sustainable aviation projects

The Commercial Bank of Ethiopia (CBE), the country’s financial powerhouse, has established a new tradition called “The New Year with Our President.” Launched last year, this event serves as an annual address from the bank’s leadership to its extensive workforce.

This year’s celebration took place on September 18, one week after the Ethiopian New Year on September 11. The event provided President Abie Sano, a prominent figure in the financial sector, with a platform to connect with representatives of his over 70,000 employees. He used this opportunity to share his experiences, discuss the bank’s current status, and outline its future strategy.

President Abie expressed a strong desire to share personal anecdotes as lessons for young professionals. However, time constraints during the ceremony, held in the large hall of the headquarters, limited this interaction.

In his speech, he reflected on the challenges he has encountered during his two terms of leadership. He continues to lead a significant reform initiative at CBE, supported by international partners and active government involvement. This support includes a new capital injection and the resolution of outstanding debts from public enterprises.

During his hour-long address, President Abie commended the bank’s promising performance over the past year, marking a notable improvement from previous years that faced various external and internal challenges. While he acknowledged these achievements, he also addressed areas needing immediate attention to ensure optimal performance and regain lost customers.

The President emphasized his expectation for employees to enhance their efforts and rejuvenate CBE’s esteemed work ethic and culture, which has been cultivated over decades. He firmly stated, “We must eliminate any employee whose behavior tarnishes our image.”

Addressing the packed hall, President Abie reiterated CBE’s vision: “to become a world-class commercial bank that financially drives Ethiopia’s future.” He emphasized that achieving this goal requires additional effort beyond regular working hours. “This vision will be realized when we engage in effective financial intermediation in society,” he stated, adding, “We must aggressively expand resource mobilization.”

He highlighted the collection of 515 billion birr in deposits during the last financial year as the foundation of all operations—a success that must be vigorously sustained.

President Abie reminded the audience that CBE, once a small bank, now finances every major project in the country and is highly regarded for its contributions. He reflected on the bank’s founding in 1942, following independence from fascist Italy, with the goal of ensuring the nation’s economic self-sufficiency. “This is why the bank has supported every social, economic, and development initiative in the country,” he noted.

Moreover, CBE has played a pivotal role in shaping the current private banking sector by providing expert personnel and facilitating financing. Its contributions to financial inclusion, branch expansion, and financial literacy have been significant. “Most enterprises and private companies were established with the support of CBE,” he concluded, underscoring the bank’s foundational role in Ethiopia’s economy.

Leading a Financial Giant Through Crisis

Abie has twice taken the helm of the Commercial Bank of Ethiopia, the country’s largest financial institution, during critical periods of turmoil.

His first appointment as president came in January 2006, following the tragic suicide of his predecessor, Gezahegn Yilma. At just 34 years old, Abie’s selection surprised industry experts, making him the youngest president in the bank’s history. At that time, CBE’s assets were under 30 billion birr, and the institution faced significant challenges.

Experts noted the unusual nature of his appointment due to his youth compared to previous presidents. “He was the youngest bank president ever, taking the post at the age of 34,” CBE leadership told Capital. The bank was in dire straits, and the government had even considered outsourcing its management to external firms to address its difficulties.

Consultancy firms, including the Bank of Scotland, were engaged to enhance management, KPMG was hired for a comprehensive audit, and the BPR scheme was implemented to provide assistance. However, these initiatives did not yield the desired outcomes.

The government sought a new management team through an outsourcing arrangement, eventually negotiating with the State Bank of India (SBI), which ultimately fell through. In the early 2000s, SBI had discussed managing CBE for three to five years.

“The deal with SBI failed when the Indian bank discovered that CBE’s non-performing loan (NPL) ratio was extraordinarily high,” Abie recalled. “When I took over, the NPLs had reached 59 percent, a level that SBI deemed unmanageable. They expressed that it was impossible to fix the bank, considering it effectively bankrupt. They had never encountered a financial institution with over 50 percent NPLs and advised that only someone with in-depth local knowledge could provide a solution.”

He explained to his staff that his experience in the credit department was a key factor in his appointment at such a young age. “Through a combination of luck and hard work with my management team, we significantly reduced the NPLs,” he stated.

By the time he left the position in November 2008, CBE’s NPL ratio had fallen to 4.5 percent, aligning with the regulatory standard of 5 percent. Abie’s management team was credited with achieving these results within just a year and a half of his appointment.

“I was removed from my position when I resisted a government program that I believed would jeopardize the bank, which was still struggling to recover from the previous crisis,” he recalled.

After leaving CBE, he served as the founding president of Oromia Bank until the government called on him again to rescue his former employer, where he began his career after graduating from Addis Ababa University with a BA in Accounting.

“When I returned to CBE in March 2020, we were facing the same issues. All public-sector credits were non-performing or not being repaid, the non-performing loan (NPL) ratio for private customers was 20 percent, and the liquidity ratio stood at 9.4 percent—well below the regulatory minimum of 15 percent,” he said. “Additionally, there were complex challenges, including foreign currency issues, when I was reassigned in 2020.”

“Our immediate priority was to address the liquidity crisis, followed by a comprehensive review, assisted by consultants, to realign the bank’s mission.”

This review uncovered several critical problems: service quality had significantly declined, resulting in a loss of competitive edge and market share for the bank. Employee productivity was low, with 92 percent of branches operating at a loss. A high cost-to-income ratio of 88 percent also posed a major challenge.

Most public-sector credits, which accounted for over 90 percent of the total outstanding loan portfolio, had not been repaid for up to 20 years. “Surprisingly, despite regulatory requirements, 75 percent of the private sector credit portfolio consisted of long-term loans,” he noted. “While long-term credit for public enterprises is acceptable, the central bank’s regulations permit financial institutions to allocate only 20 percent of their credit as long-term loans to the private sector. At CBE, it was 75 percent.” In many instances, private sector credit was concealed within public loan portfolios.

According to the president, the most significant achievement of the past budget year was not the progress in deposit mobilization but the government’s commitment to repaying the 945 billion birr in credit extended to public enterprises. “I would like to thank the government for heeding my advice on this matter,” he said, commending the decision to allocate a budget each year to settle public enterprise debt at CBE as part of a broader macroeconomic reform.

The review also revealed considerable customer complaints, which have seen some improvement locally but remain high among the diaspora community. “During my latest overseas trip, I noticed that we need to enhance our services for the diaspora,” he added.

Technological lag was another serious issue affecting the bank when he assumed leadership five years ago. “We have gradually gotten back on track. For the first time in the last budget year, we are not only maintaining our position but also reclaiming the market share we lost,” he said. “In the past year, we regained our market share in four key performance indicators. We have demonstrated that it is possible to reclaim our market, and we must continue on this path.”

Moreover, over 50 percent of branches have become economically profitable. “It’s a miracle,” he noted as a significant success achieved in the past year.

Key Priorities for the Year

In a recent address to employees, President Abie emphasized that exceptional customer care must be the highest priority for all staff this year.

“We must enhance both our service and the customer experience,” Abie stated.

He highlighted the urgent need to improve the workplace culture and behavior observed among some staff, noting, “There are disengaged individuals within our company, and we must address these work habits.” He also identified attitude as a critical area needing improvement, pointing out that many employees display behavior that is unacceptable to management and inconsistent with the values and culture of the Commercial Bank of Ethiopia (CBE).

The President emphasized, “Our behavior must align with the bank’s mission and standards. Respect for customers, colleagues, and leaders is non-negotiable and essential for us to reclaim our success.”

Another central theme was fostering a stronger sense of ownership among employees. Abie highlighted a significant gap in how employees perceive their stake in the bank.

“As its name suggests, this is the Commercial Bank of Ethiopia—it is ours. We own this company, and we must actively protect its image,” he advised. “No Ethiopian leader has ever taken CBE with them. Many presidents have managed the bank, but none have derived personal ownership benefits from their position. While we may have personal disagreements with individuals, there is no justification for harboring negativity towards CBE. This institution is our shared asset and our children’s legacy. Therefore, we must enhance our sense of ownership.”

He cited other public enterprises where employees demonstrate strong ownership, asserting, “I would argue that no other institution offers benefits as substantial as CBE.”

Regarding performance, the President acknowledged that CBE does not lead in all Key Performance Indicators (KPIs), stating that improvements in these areas are crucial for boosting profitability. He specifically identified foreign currency mobilization as a key area needing correction to maximize profits.

Ambitious Outreach and Financial Targets

Reiterating the bank’s core mission, Abie stated, “We must provide finance for the Ethiopian people.” Currently serving 200,000 borrowers, the goal is to expand this reach to between 5 and 10 million households.

To achieve this, CBE has set ambitious targets:

• Mobilize 750 billion Birr in fresh loans by the end of June 2026, a significant increase from the 515 billion Birr target for 2024/25 and 120 billion Birr the previous year.

• Provide loans to 100,000 new customers by June 2026.

• Generate up to 6 billion dollars in foreign currency, a considerable rise from the approximately 4 billion dollars earned the previous year.

Abie has frequently highlighted a pattern of misdemeanors that have negatively impacted the bank’s public image. Senior bank experts confirmed that various misdemeanors have affected the bank over the years.

“This was a key reason for the president’s focus on the issue,” they told Capital, explaining the leadership’s attention to the matter.

They added, “Staff honesty and adherence to professional obligations have been particular challenges observed in some employees. However, this is now improving significantly.”

“Since the case received prudent attention from leadership, substantial changes have been implemented,” the experts stated.

A risk expert elaborated on these changes: “For instance, to combat internal fraud, we have introduced account masking, which restricts full customer account access to branch managers only. We have also installed several technology-backed systems to safeguard customer data and transactions.” The expert emphasized that the state-owned financial firm has a zero-tolerance policy toward behavioral issues.

“We have taken extensive administrative action, terminating a significant number of employees and pursuing legal measures against them,” they said.

The bank is also providing staff with awareness training and skill development programs to uphold its professional reputation.

“Employee conduct has been one of the challenges affecting our public image, but it is now being restored,” they concluded.