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Addis Ababa Declaration: A Paradigm Shift Forged in the Crucible of Summit Debates

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The Second African Climate Summit (ACS2) held in Addis Ababa marked a historic turning point in Africa’s fight against climate change. Bringing together over 25,000 delegates—from heads of states to grassroots activists—the summit culminated in the adoption of the landmark “African Leaders’ Addis Ababa Declaration and Call to Action on Climate Change.” This document represents more than a political statement; it’s a detailed blueprint crafted from frank, robust discussions during the conference’s many panels and forums, embodying a shared African climate future grounded in justice, innovation, and leadership.

The Addis Ababa Declaration and its 157 action points emerged from a broad consensus that Africa must move beyond a position of dependency and marginalization toward equal partnership on the global stage. The declaration demands that Africa’s collective voice be heard loud and clear in transforming international finance and trade systems, asserting a new political strategy designed to make a lasting global impact. At the heart of the Declaration is a recognition—forcefully articulated throughout the summit—that Africa should no longer be confined to an “aid-first” narrative. Instead, it demands climate finance as a matter of justice, compensation for crises it did not cause, and sovereign rights.

The summit’s discussions reflect a complex but purposeful mix of optimism and realism. Participants recognized the need to harness Africa’s moral authority and vast potential as a powerful bargaining tool in international negotiations. The transition from accepting charity to demanding justice is not mere rhetoric; it is a fundamental thread woven into every speech, panel, and resolution.

Key structural inequities preventing climate finance from translating into concrete progress were painstakingly laid bare. African countries’ crippling debt burden consumes precious fiscal space, leaving little room for investment in climate resilience. The declaration calls explicitly for a shift away from debt-financed climate projects toward grants and gift-equivalent financing to safeguard Africa’s development prospects. Alarmingly, 53% of adaptation funds to Africa throughout 2021–2022 came through loans, perpetuating a cycle of vulnerability.

Credit rating biases compound this challenge, imposing punitive borrowing costs disconnected from African economies’ actual performance. Panelists underscored that these biases stem not from incapacity but deeply embedded structural inequality. The Declaration demands reforms of international financial institutions and credit agencies to realign evaluations with Africa’s true climate risks and opportunities.

Another deserving spotlight was the persistent neglect of the agriculture sector—the continent’s largest employer—in climate finance frameworks. Many promising African projects fail to attract investment due to inadequate preparation and technical support, further hindering progress toward building resilient food systems. The Addis Ababa Declaration stresses African-led innovation and equitable partnerships to dismantle these barriers, emphasizing shared leadership rather than one-sided guidance.

The African Green Climate Fund’s Catherine Kaufman voiced support for this rejection of transplantation models. The Fund’s country-driven, country-owned approach aligns fully with Africa’s vision for stewardship and self-determination, signaling readiness among global financial institutions to embrace a new mindset of partnership and empowerment.

One of the Summit’s most urgent themes was reforming trade and investment frameworks to accommodate Africa’s realities and ambitions. Discussions on the European Union’s Carbon Border Adjustment Mechanism (CBAM) revealed both the existential risk and latent opportunity facing African exporters. John Asafu-Adjaye of the African Centre for Economic Transformation explained the continent’s economic dependence on raw commodity exports leaves it vulnerable to punitive climate-related trade measures.

Asafu-Adjaye’s solution reflects the Declaration’s core: Africa must modernize economies and “set its own green standards,” positioning itself advantageously as a Global South climate leader. David Beer, CEO of Trademark Africa, warned that formal climate trade barriers have already surged from 8% to 20% of trade restrictions, compounded by informal boycotts by Western buyers abruptly halting purchases of African produce without notice. His call for collective action to digitize supply chains and integrate geographic data to meet global market standards illustrates the future-facing, systemic approach championed by the Addis Ababa Declaration.

Financially, James Monge of Equity Bank Group underscored the unparalleled advantage Africa holds with 62% of the world’s renewable energy capacity alone. The continent’s green industrial revolution depends on strengthened local and regional financial systems to convert this potential into trade and investment gains. The Declaration’s call for African-led financial institutions echoes this vision, demanding self-reliance alongside global partnership.

Financing needs are colossal. The Addis Ababa Declaration quantifies Africa’s need at $3 trillion by 2030 to achieve climate targets—a stark contrast to the paltry $30 billion disbursed between 2021 and 2022. This figure casts climate finance as a “legal obligation” under the Paris Agreement and a foundational right for Africa’s development, demanding accountability from historic polluters.

Nature-based solutions—central to Africa’s climate strategy—received renewed endorsement at ACS2. From Ethiopia’s Green Legacy Initiative planting billions of trees to the African Union’s Great Green Wall restoring landscapes, Africa envisions climate resilience built with forests, wetlands, and indigenous knowledge at its core, providing livelihood, biodiversity, and carbon regulation benefits.

Africa’s climate summit was thus both a reckoning and a renaissance. It recast Africa’s global narrative—from victimhood to visionary leader—offering integrated strategies and diplomatic power to reshape climate diplomacy. The Addis Ababa Declaration offers both a concrete roadmap and a rallying cry: unity, ambition, and justice must drive the continent’s climate path.

New digital system launches National Payment Switch, Unified ID, and QR Code to Streamline Commerce

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The Ministry of Trade and Regional Integration (MoTRI) has unveiled a cutting-edge digital platform called the Integrated Company Registration Process (ICCJ), designed to simplify business registration and licensing nationwide. The launch event was held on September 8, 2025, at the Skylight Hotel.

Funded by the European Union and developed in partnership with the German Agency for International Cooperation (GIZ), the ICCJ serves as a “one-stop-shop” for entrepreneurs and investors. The platform integrates services from key government bodies, including the Ministry of Revenue, the Federal Documents Verification and Registration Agency (DARA), vocational qualification institutions, and the National Identification Service.

This seamless digital coordination has slashed the average time for business registration and licensing from five days to just one, significantly speeding up the process.

State Minister Abdulhakim Mulu of MoTRI emphasized the system’s transformative impact: “Previously, institutions struggled to create a unified identity system for residents. We are now working with the National Weather Service to solve this challenge. This platform enhances management with convenience, transparency, and accountability.”

A standout feature of ICCJ is its integration with ETH-Switch, the national payment system. This enables businesses to settle registration fees, tax screenings, and other payments electronically via banks using ATM and debit cards or the new national QR payment system, ETQR. This integration is expected to streamline payments, reduce cash handling, curb financial malpractice, and improve government revenue collection.

ICCJ is a core element of Ethiopia’s “Digital Ethiopia 2025” strategy, which aims to harness technology to improve public services, boost international competitiveness, and create a favorable environment for both domestic and foreign investment.

Beyond efficiency gains, the system also builds a digital footprint that could help financial institutions develop credit scoring models for small and medium-sized enterprises (SMEs), potentially unlocking unsecured financing opportunities in the future.

Ethiopia drastically raises capital requirements for coffee exporters

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The Ethiopian Coffee and Tea Authority (ECTA) has issued a new directive significantly increasing the minimum capital requirements for coffee exporters. The move aims to professionalize the sector and curb illegal business practices by raising the starting capital for private exporters by 15 times and for trade associations by over 13 times.

Under Directive 1106/2025, private exporters must now have a starting capital of 15 million birr, up from 1 million birr. Trade associations and companies like joint stock and limited liability companies face an increase from 1.5 million birr to 20 million birr. ECTA explained that the previous regulations were insufficient to support, monitor, and control exporters, particularly concerning the misuse of certificates of competence.

Additionally, all exporters—except farmer exporters—are required to have a coffee laboratory certified by ECTA for basic quality testing. They must also appoint a professional taster with at least a diploma and a renewed proficiency certificate, who can serve only one coffee dispatcher.

Semachew Ababu, a veteran coffee exporter, welcomed the directive, saying it will “refine the market” by limiting participation to well-financed companies, ultimately improving product quality and international standards.

However, the regulation has sparked concerns among smaller businesses. Entrepreneur Sosena Desalegin expressed frustration over the sudden increase, saying, “It’s impossible to raise that much money overnight for a new business. This regulation strengthens the market and destroys new ideas and competition.”

An independent expert acknowledged the intent to curb illegal activities and enhance professionalism but warned that the steep capital hike might stifle innovation and competition. “It may limit the sector to a few large players, which is not healthy for long-term growth and diversification,” the expert said.

The new guidelines came into effect this week and are expected to significantly impact Ethiopia’s coffee export market.

Morocco, RC Strengthen Climate Finance Collaboration

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Nezha Alaoui M’Hammedi, the Moroccan Ambassador to Ethiopia, hosted a significant event at the Moroccan residence, focusing on enhancing climate finance initiatives in Africa during the African Climate Summit.

In her opening remarks, Ambassador M’Hammedi emphasized the importance of collaboration, particularly regarding the Congo Basin, a vital area for climate stability. She highlighted the initiative launched by King Mohammed VI, which aims to mobilize resources through the Blue Fund dedicated to the Congo Basin. This fund is designed to support sustainable development and address pressing climate challenges in the region.

The Ambassador articulated that this initiative reflects Morocco’s commitment to climate change adaptation, especially concerning the unique challenges faced by African nations. She noted that increased cooperation among countries could significantly enhance efforts in energy transition and sustainable development.

During the event, the Ambassador praised King Mohammed VI’s support for the Congo Basin Climate Initiative. She underscored the crucial role that French-speaking African countries can play in accessing climate finance, which is vital for addressing their specific climate challenges.

Arlette Soudan-Nonault, Minister of Environment and Sustainable Development of the Republic of Congo, along with other dignitaries, expressed gratitude for the Moroccan initiative, recognizing it as a distinguished model for collaboration across the African continent.

The Minister delivered a compelling speech, highlighting the critical role of the Congo Basin as a “continent of solutions” to the global climate crisis. She explained that Congo’s forests sequester 1.5 billion tons of carbon dioxide (CO2) annually and that its peatlands, with the aid of international research, contain 31 billion tons of CO2, far exceeding previous estimates.

The gathering served as a platform to discuss the critical role of climate finance in mobilizing resources for sustainable development. Participants emphasized the need for ongoing dialogue and cooperation to effectively tackle the challenges posed by climate change.

This initiative aims not only to strengthen partnerships between Morocco and the Democratic Republic of the Congo but also to establish a broader framework for climate action across Francophone African nations. The event concluded with a commitment to advancing these discussions ahead of the upcoming COP summit, ensuring that Africa’s voice is represented in global climate negotiations.

Nefertiti Mushiya Tshibanda, Permanent Representative of the World Organization of French Speakers (OIF) to the African Union and UNECA, highlighted the OIF’s long-standing efforts since 1988 to support French-speaking countries in accessing climate finance and implementing tailored solutions. She emphasized that the initiative will particularly empower women and young entrepreneurs by enhancing capacity and promoting innovation.