Ethiopia has struggled to achieve universal water supply and has also failed to recoup its investment costs, according to announcements made at the 12th Multi-Stakeholder Forum on Drinking Water Supply and Sanitation. This forum, which has been active for the past 18 years, faced interruptions due to the coronavirus pandemic and other issues but has resumed in the past two years.

During the forum, it was highlighted that Ethiopia’s inability to provide universal water supply and recover investment costs is attributed to several factors, including limited access to financing and inadequate foundational infrastructure. Additionally, a lack of transparency at various government levels has exacerbated these challenges.

At the same forum, Engineer Habtamu Itefa, the Minister of Water and Energy, reported that over half a million people in the country now have access to electricity through various alternative energy technologies. He emphasized the progress in providing electricity access to the population through these innovative solutions.

Ethiopia has made significant strides in space exploration, with over 300 students enrolling in the Path to Space program, designed to propel the nation towards success in this frontier. Over the past five months, the inaugural Pathways to Space initiative has trained 312 students in processes ranging from assembling small satellites to launching them in the future.

The program, a collaborative effort involving Ethiopia, Nigeria, and Tanzania, is spearheaded by the Space Science and Geospatial Institute of Ethiopia (SSGI), the Boeing Company, and the Future African Space Explorers STEM Academy (FASESA).

This initiative not only provided students with hands-on experience in testing their designs in real-world scenarios but also sparked their interest in space exploration, laying a foundation for their future education and careers in this exciting field.

Ethiopia’s urban housing crisis continues to escalate, with various efforts to address the issue for low- and middle-income citizens falling short of expectations. A recent proposal suggests that imported materials for affordable housing projects should be exempted from VAT to alleviate the situation.

To tackle the housing shortage effectively, home developers advocate for including affordable housing in the VAT exemption list. They argue that using low-cost local technologies and prefabricated homes can significantly address the housing demand and supply gap, particularly in urban areas.

Purpose Black, a company that entered the real estate industry two years ago, criticized the government’s omission of affordable housing from the VAT exemption list. According to Ermias Berhanu (PhD), the company’s CEO, the construction materials for affordable housing are sourced from China, requiring substantial foreign exchange. The current VAT policy exacerbates the challenge of developing affordable housing.

“The inclusion of affordable housing as a basic need in the VAT exemption list is crucial,” Berhanu stated. “The Ministry of Finance’s directive 1006/2024, issued on June 20, 2024, did not include affordable housing, which needs to be addressed to support low-income citizens.”

The Ministry of Finance explained that the directive aimed to exempt basic food supplies from VAT to relieve the cost burden on low-income populations. However, experts in the housing sector emphasize that affordable housing should also be prioritized in the VAT exemption to make a meaningful impact on the housing crisis.

Perpetual Black has faced criticism for its performance and has reportedly received threats from the government. Despite these challenges, the new CEO expressed commitment to improving the company’s operations and contributing to the housing sector.

As the debate continues, stakeholders hope the government will reconsider its stance on VAT exemptions for affordable housing to address Ethiopia’s pressing urban housing needs effectively.

Moha, a company renowned for exclusively supplying internationally popular Pepsi products to local markets, has been sued by workers for allegedly causing layoffs at the Soft Drinks Industry SC. The company, whose assets belong to Ethiopian investor Sheikh Mohammed Hussein Al Amoudi and was recently integrated into the MIDROC Investment Group, introduced a new organizational structure aimed at solving structural problems.

On June 6, 2024, Moha’s General Manager, Adam Dawood, announced the termination of employment contracts for workers at the Teklehaymanot factory through an official letter. This decision has sparked legal action from the affected employees.

A source, who has worked at the factory for over 19 years and is among those laid off, expressed dismay at the termination. The source stated that despite their long-term commitment and contribution to the company’s growth, previous management issues led to the company’s financial troubles, making the layoffs unjust.

The workers, now facing joblessness, have voiced concerns about their families’ vulnerability due to the abrupt decision. Despite repeated inquiries, the employees received no satisfactory explanation for the layoffs, prompting them to seek legal redress to enforce their rights.

In their lawsuit, the workers demand either the payment of their salaries or reinstatement. Moha, in its termination letter, explained that although it marketed popular products, it faced significant losses that jeopardized the company’s continuity. The letter also mentioned efforts to introduce a new organizational structure and personnel allocation to address these structural problems and ensure the joint venture’s sustainability.

The letter indicated that each employee received a two-month notice from April 9, 2024, with their contracts ending on June 8, 2024.

Historical context reveals that the Nefas Silk factory, the country’s first PepsiCo facility, was established with a capital of 1 million birr, boasting a production capacity of 20,000 bottles per hour. Additionally, the Teklehaymanot factory, initially established in 1961 as the “Saba Tej” Share Company, has been a significant player in the industry.

As the legal battle unfolds, the workers hope for a resolution that addresses their grievances and secures their rights amidst the company’s restructuring efforts.