At the 2nd Africa Climate Summit, African leaders and experts called on the continent to move beyond exporting raw materials toward a new era of climate-friendly trade and green industrial development. This call comes amid a global shift in trade regulations driven by climate change, which is reshaping international commerce.

David Beer, CEO of Trademark Africa, highlighted that climate-related trade restrictions have increased significantly, rising from 8% five to six years ago to 20% today, with expectations of further growth. Regulations such as the European Union’s deforestation rule are now permanent, posing challenges but also opportunities for Africa to take leadership in green trade.

A major concern is traceability. African exporters in key sectors like cocoa, coffee, tea, and wood must provide detailed data on their products’ journey from farm to port to access important markets. Without this information, access is denied, posing a barrier that Africa must overcome through improved digital tracking solutions.

The summit’s panel discussions also addressed the impact of changing consumer preferences in markets like Europe, including a growing demand to avoid products transported by air. This shift threatens economies reliant on high-value fresh produce exports, such as Kenya, Uganda, and Ethiopia.

Experts emphasized that instead of simply reacting to external pressures, African nations should leverage their unique advantages to lead the green transition. Currently, intra-African trade accounts for only 11% of the continent’s total trade. Expanding this trade could reduce reliance on foreign markets and empower African countries to set their own environmental standards.

James Mwangi, CEO of Equity Bank Group, stressed that Africa’s population of 1.3 billion people represents a powerful force for a new development model. He highlighted Africa’s vast renewable energy resources, which comprise over 62% of the world’s renewable capacity, as a foundation for building clean industries free of polluting legacy systems common in developed countries.

Gianpiero Nacci, Managing Director for Climate Strategy at the European Bank for Reconstruction and Development, described the energy transition as “inherently irreversible,” noting the economic competitiveness of solar power and electric vehicles.

By using clean energy to process raw materials into finished products—such as turning wood into furniture or cocoa into chocolate—Africa can add value, create jobs, and produce environmentally friendly goods. The absence of outdated industrial systems provides Africa with a chance to leapfrog developed economies in adopting advanced technology and data management.

Digitalization and blockchain-based platforms were highlighted as key tools to enhance product traceability and market access. Experts urged collective investment in public-private systems accessible to all businesses to meet these challenges.

Successful implementation of this green economic revolution depends heavily on mobilizing finance and forging a unified African political voice. Financial institutions are developing platforms like the Africa Trade Gateway to bridge information gaps, but increased private-sector financing is needed to empower entrepreneurs.

African unity at international forums such as the World Trade Organization and UN climate summits was deemed essential. A united representation of all 54 countries can significantly influence global negotiations and advance the continent’s green agenda.

Nearly 80% of Ethiopian children live in multi-sectoral poverty, a new study reveals, highlighting serious gaps in basic services beyond financial hardship. The report, co-produced by the Policy Study Institute (PSI) and UNICEF, warns that Ethiopia is far from meeting its 2030 Sustainable Development Goal of reducing child poverty by half.

Titled “Multi-Sectoral Child Poverty in Ethiopia,” the study shows that about 47.8 million children—80.4% of the population under 18—lack access to multiple essential rights and services. On average, each affected child faces deficiencies in 6.2 of nine key sectors, including sanitation, clean water, housing, nutrition, health, and recreation.

Access to sanitation and clean water emerged as the most critical issues, with 90.6% and 87.3% of children deprived in these areas, respectively. Senior PSI researcher Jamal Mohammed noted that over 80% of children suffer deficiencies in five or more sectors, and 1.6% lack access to all nine.

The study exposes stark regional and urban-rural disparities. Multi-sectoral child poverty is highest in Somalia (88.2%), Afar (87.9%), and Tigray (86.1%), while Dire Dawa (41.8%) and Addis Ababa (44.9%) have the lowest rates. Rural children are disproportionately affected, with an 84.8% poverty rate compared to 55.2% in urban areas.

Adolescents aged 15-17 are particularly vulnerable, with 84.9% living in multi-sectoral poverty. Using innovative photo-sound methods, researchers incorporated children’s perspectives, revealing that many understand poverty as a mental burden, feeling depression and anxiety due to family unemployment and health struggles.

Some children also cited conflict as a factor worsening their conditions. Daniel Kumitz, UNICEF’s chief of social policy, urged stakeholders to prioritize children in national policies, calling investments in children a “strategic decision” for Ethiopia’s future prosperity.

Major General Ahmed Hamzam, Deputy Director of PSI, stressed that the study offers crucial data for crafting targeted and equitable solutions. The findings are already influencing the revision of Ethiopia’s national social protection policy, with experts calling for integrated approaches to effectively combat child poverty across the country.

Taxpayers are expressing significant frustration over confusion regarding their tax obligations for the previous budget year. They believe the tax authority is unfairly requiring them to apply a newly enacted law retroactively, leading to a climate of uncertainty.

The amended income tax proclamation, which was highly anticipated, was ratified and took effect at the beginning of the current budget year on July 8, 2025. However, taxpayers—particularly those classified as medium and high-level “Category A” taxpayers—are deeply concerned about how this law is being implemented.

Although their initial claims were reported by Capital weeks ago, they now feel they have “nowhere to go” to resolve their specific cases. Their primary concern is not with the new law itself, but rather with the timing and procedure of its application.

The Ministry of Finance (MoF) oversees the implementation of Proclamation No. 1395/2025, which amended the 2016 law. “We had high hopes for a resolution to the confusion between the tax authority and the business community,” taxpayers told Capital this week, noting that there has been no constructive response from relevant government bodies. “No one is helping us find a solution.”

The central issue revolves around timing. The MoF confirmed that the amended law took effect on July 8, 2025. However, taxpayers report that authorities are insisting they file their profit tax declarations for the previous budget year, which ended on July 7, 2025, under the new rules.

Category A taxpayers, in the highest tax bracket, have reported that when they attempted to declare taxes for the year ending July 7, their submissions were rejected.

“They informed us that our tax liability must now be calculated under the new proclamation effective July 8. However, we believe this should only apply to the current budget year, not to the tax year that has already concluded,” expressed frustrated taxpayers.

A significant change in the amended proclamation is the introduction of a minimum tax, which requires businesses to pay income tax equivalent to at least 2.5% of their total annual turnover, regardless of their declared profit.

Taxpayers assert that authorities are pressuring them to revise their previous year’s declarations to align with this new rule. One businessman involved in large-scale import-export explained that despite high transaction volumes, his company operates on slim profit margins.

“For the current budget year, we will comply with the new law and prepare for the minimum tax requirement. However, our company cannot bear the additional tax burden imposed for transactions completed in the previous budget year—before the law even took effect,” he stated.

Another businessperson echoed this sentiment: “We understand that the new law applies moving forward, and we will adjust accordingly. However, applying it retroactively is unreasonable.”

The business community is urgently calling for the Ministry of Finance to intervene in this dispute. They argue that enforcing the new law on past transactions is unfair and creates significant operational challenges. They seek clearer guidance and open dialogue to resolve the issue without imposing undue financial strain on enterprises.

All taxpayers must settle their profit tax for the 2024/25 budget year between July 8 and November 9, 2025, adding urgency to their calls for clarity.