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Bringing the water system back to life in Tigray

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Medicins Sans frontiers /Doctor without borders called for more resources and efforts to increase the availability of safe water and improve overall sanitation and hygiene conditions in parts of Tigray recovery continues.
“When the fighting got really bad here and people fled into the forest for a week,” explains Weldekiros Assefa, an engineer and water and sanitation expert for Doctors Without Borders (MSF) in Ethiopia “When they returned, the electricity had been cut off and the water hand pumps that many rely on for water had been dismantled and filled with stones.”
MSF’s medical humanitarian response in northwestern and central Tigray since November 2022 has rehabilitated health facilities’ water systems and re-established functioning waste management systems, allowing for the resumption of health services in 14 districts in the region and repairing 600 hand pumps in the region restore access to clean water in a place where – not long ago – water was scarce to non-existent during two years of civil war.
The war caused significant damage to infrastructure, whether due to lack of maintenance, intentional destruction, or the fighting. Health facilities were hardly functioning. Many became ill with diarrhoea. Whatever water people had was mainly used for cooking and drinking, but not for washing – increasing the risk of skin diseases and other illnesses that spread rapidly without access to hygiene.
Among MSF’s first priorities was rehabilitating health facilities’ water systems and re-establishing a functioning waste management system. In Shire’s Suhul hospital, for instance, the team managed to get safe water flowing again and built latrines, showers, and areas for washing. They also installed incinerators to ensure safe disposal of sharp, soft, and organic medical waste such as needles, syringes, soiled dressings and body parts. Most crucially, the team cleared a mountain of rubbish containing hazardous medical waste close to the facility.
Another critical goal was to bring safe water into people’s homes as a bulwark against the spread of waterborne diseases, including acute watery diarrhoea, skin and eye diseases, and those caused by parasites. The biggest fear was that the lack of access to clean water might trigger a cholera outbreak.
Between December 2022 and March 2023, several assessments were done in northwest and central Tigray and showed that only 34 percent of water hand pumps were still functioning among the 2000 surveyed across 14 districts. It was critical to repair the unusable pumps ahead of the rainy season, when water sources can become contaminated from open air defecation, increasing the risk of cholera outbreaks.
When water hand pumps aren’t functioning, people will use water from lakes and rivers, which is often unsafe. “At one stage, towards the end of March, almost one in four ambulatory patients we were seeing in Tigray were suffering from preventable waterborne diseases,” says Samreen Hussain, MSF medical coordinator in Ethiopia.
At the end of April, several cases of acute watery diarrhoea were recorded in Derso, a small village south of Sheraro, after a ten-year-old boy died on his way to a rural health facility. “The conditions in the village were very poor,” says Daniel Shmondi, an MSF water and sanitation supervisor who was among the team assessing the situation in the area. “There were no wells and people were using water from the river for all purposes. Open air defecation was common practice near homes.”
In response, the team distributed water purification tablets to 120 households and checked whether other people in the village had become sick. They found that two siblings of the boy who died had severe diarrhoea, and they were then admitted to an isolation centre that MSF helped set up in Sheraro to prepare for a possible cholera outbreak. This also triggered a response at Suhul Hospital, the referral facility for the region, which is two-hour drive away. The hospital rehabilitated its cholera treatment centre and trained staff to strengthen their ability to respond during outbreaks.
Early in the morning, Adisalem loads his camel with the spare parts he will need to repair a hand pump in Ademeyti, a village at the border with Eritrea. “In this area most people have not returned yet,” he says. “Many are still living in camps or with hosts in the community.”
Persisting insecurity has also slowed down recovery from the war. Water infrastructure in Tigray underwent costly repairs several times, only to be looted or intentionally destroyed again.
Aid organisations have been hesitant to carry out new big interventions. Pumps for the water treatment plant that provides safe water to the city of Sheraro took six months to be replaced. During that time, the city survived thanks to deliveries made by truck or donkeys. In addition, MSF provided up to 1.4 million litres of safe water for six displacement camps each day.
Where water utility technicians are not available, MSF technicians carry out the rehabilitation directly, while training new staff hired by the water administration. The objective is to act as a catalyst in the re-activation of the pre-existing public hand pump repair system.

Private sector to play key role in Ethiopia’s national rehabilitation program

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Initiative Africa (IA), in collaboration with Ethiopia Chamber of Commerce and Sectoral Association (ECCSA) and Ethiopia’s National Rehabilitation Commission (NRC), organized a consultative workshop on the role of the private sector in Ethiopia’s National Rehabilitation Program.
The event was officially opened by an opening remark from Ambassador Teshome Toga, Ethiopia’s National Rehabilitation Commission Commissioner, and a keynote speech was delivered by Åsa Andersson, Head of Bilateral Development Cooperation Embassy of Sweden, Addis Ababa. The workshop focused on how the private sector can play a significant role in supporting the mission of the Commission for Disarmament, Demobilization, and Reintegration (DDR) in Ethiopia. Among the audience, Private sector representatives from MOENCO, MOHA GBT Engineering, Jupiter International Hotel, Z.T. General, Wanaza Furnishing, WT&T Construction, Hilltech Engineering were actively present on this event.
Initiative Africa, as a leading non-profit organization dedicated to promoting peace, good governance and private sector development believes that the private sector can play a significant role in supporting the mission of the Commission for Disarmament, Demobilization, and Reintegration (DDR) in Ethiopia. While the overall DDR program aims to facilitate peacebuilding and post-conflict recovery, Initiative Africa’s involvement will be limited to the reintegration phase, which focuses on helping former combatants reintegrate into society.
It is realized that there are registered damages and loses in different sectors therefore recognizing the unique capabilities and resources of the private sector, Initiative Africa (IA) explores how their involvement can enhance the effectiveness and sustainability of the reintegration process. By leveraging their expertise, resources, and networks, the private sector can significantly enhance the prospects for sustainable peace and socio-economic development in post-conflict communities.
Some of the areas of engagement IA believes the private sector can play a pivotal role in are Job Creation and Skills Development, Small and Medium Enterprises (SME) Support, Corporate Social Responsibility (CSR) Initiatives and Public-Private Partnerships (PPP) as well as Advocacy and Awareness.
By actively involving the private sector in the reintegration phase of Ethiopia’s DDR program, the Commission can tap into their unique capabilities, resources, and networks. This engagement will not only accelerate the process of reintegrating ex-combatants but also contribute to sustainable peace and socio-economic development.
The workshop was a valuable opportunity for the private sector, government officials, and civil society organizations to come together and discuss how they can work together to make a difference in the lives of former combatants and their families. Initiative Africa is committed to supporting the private sector in its efforts to play a key role in Ethiopia’s National Rehabilitation Program.

Capital Markets in Ethiopia, access to finance and its potential for SMEs

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By Saron Woldegabriel and Tefera Gezmu

Small and medium enterprises (SMEs) are the backbone of Ethiopia’s economy, accounting for most services across nearly every sector, contributing to job creation, and overall economic growth. In Africa, SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth. Most commonly, SMEs employ various strategies to access finance from the capital market. They may seek investment from venture capitalists or angel investors, who provide funding in exchange for equity in the company. Many acknowledge that credit constraints are a serious challenge for SMEs. Without reliable sources of working capital SMEs are incapable of making investments needed for growth, leading to stagnation may be even contributing to their failure.

SMEs are at the heart of the pursuit for inclusive growth in Ethiopia, thus all efforts to ensure that these small businesses have access to finance is imperative. Moreover, availing access to financing in the appropriate forms, and with equitable interest rates to help spur their development and growth is equally crucial for their success. And ultimately instrumental for the economic transformation of Ethiopia. Given the importance of SMEs as a source of employment, barriers to accessing financing become barriers to poverty reduction and economic growth.2 Some argue that blended financing can help business fill this critical gap. Unavailability of working capital is often leading for so many of the startups being stuck at the pilot stage and limiting their ability to flourish. In Ethiopia, some technical assistance grants have helped few SMEs begin, expand their capabilities and even improve their operations. However, what would help drive their confidence is the ability to attract funding without the need for a blended approach.

In Ethiopia, banks have historically dominated the lending market and have been the main source of finance for business, including SMEs. Given the long-established position of banks in Ethiopia, SME owners securing debt without large asset bases that can be used as collateral is unlikely. A report from the UNDP indicated that 7 out of 10 of MSEs in Ethiopia had no access to credit from any of the potential sources; thus, forcing them to rely on their own funds. Same data indicated that the majority of SMEs that sought debt finance did not receive funding in Ethiopia. For instance, for the 2020/21 calendar year, Ethiopian banks share of lending to SMEs is mere 2% of the total loan they have dispensed. This is a substantially lower rate especially when compared to the 16% lending SMEs received in the rest of lower income countries.

The fundamental question then is that, how can Ethiopia’s SMEs can secure access to much needed finance? And what would be the role of the soon to commence Ethiopian Capital Market (ECM) and Ethiopian Securities Exchange (ESX) in that regard?

In order to raise capital, most business often use a combination of debt and equity financing. Similarly, SMEs in countries with Capital Markets can go public by listing their shares on the stock market, allowing them to raise capital from a wide range of investors. Another option for those SMEs is to issue bonds or secure loans from financial institutions in the capital market. This allows them to borrow money for business expansion, research and development, or other capital-intensive projects. However, in countries where there is no Capital Markets, development and maturity of SMEs are often limited by various challenges, predominantly by the lack of access to finance. This lack of access to finance restricts their ability to expand their operations, invest on needed technologies and human resources, and even seize growth opportunities. Enter Capital Markets, ESX in Ethiopia and the opportunity for equity financing.

So, with opportunities ECM & ESX create, SMEs would now have a choice to either seek debt (borrowing from such financial institutions like banks) or obtain equity financing (provision of funding for part ownership of a business – selling shares to investors or listing your company on an exchange like the ESX with an initial public offering (IPO)). The choice often depends upon which source of funding that is most easily accessible for an SME, its cash flow, and how important maintaining control of the company is to its principal owner(s). Although, the challenge is often to determine which one of these funding sources to access and when, it is proven that Capital Markets offer SMEs an opportunity to tap into a broader pool of funding sources, including equity financing.

Equity financing through Capital Markets can provide SMEs in Ethiopia with the necessary capital to fuel their growth and development. Accessing capital markets can also enhance the visibility and credibility of these SMEs, making them more attractive to investors and lenders alike. Furthermore, capital markets can offer SMEs the opportunity to raise funds at a lower cost compared to traditional bank loans or debt instruments. By allowing SMEs to raise capital through the stock exchange, they can diversify their funding sources and reduce their dependence on personal savings, family assets or reduce the risk of being indebted no matter the outcome of their business. Objectively, it is self-evident such opportunities come with their own advantages and disadvantages.

Because the pros & cons of debt instrument are a common place in the Ethiopian economy, and in light of the establishment of the upcoming Ethiopian Capital Markets (ECM) and the Ethiopian Securities Exchange (ESX), we would like to address few of the pro and cons equity financing offer for your SME.

Advantages:

  • Equity financing carries no repayment obligation and provides extra working capital that can be used to grow a business, like an SME.
  • Equity financing does not have to be paid back – One of the major benefits of equity financing is that, unlike debt financing, you don’t have to pay back the money you receive from investors. As an SME owner, you are selling a portion of their company equity in exchange for the capital, so the financial risk is borne by the buyer, and
  • Equity financing does not add any financial burden to that SME – Unlike other types of financing, equity financing doesn’t burden your company with repayments to meet each month, making it a suitable option for pre-revenue-stage companies.

Disadvantages:

  • The major drawback involved in equity financing is that you’re partially giving up ownership of the business/SME – This means that important decisions that impact the future of your company need to be run past shareholders, which is not only a bit of a pain, but can be delay processes if you have multiple shareholders.
  • You are also going to lose some of your profit – Let’s say you own 100% of the SME right now, you’re getting 100% of the profits. But if you split out 20% of your SME to investors in exchange for equity financing, you only own 80%, meaning you’ll only be entitled to 80% of any profits your company makes.

Of course, the pros and cons of these can be more nuanced and depends the type financing accessed and the particular SME, we recommend you consult a financial advisor before making any of these decisions. On our next piece we will discuss what SMEs must do, as well as avoid as they contemplate going public and reap the upcoming Ethiopian Capital Market and ESX.

Saron Woldegabriel is Sr. Officer of Communications and Investor Education at the ECMA.

Dr. Tefera Gezmu is Sr. Advisor at the ECMA working on Professional Development and Organizational Culture.

Best Coach of the Year; Zerihun, Degarege or Gebremedin

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Zerihun Shengeta, Degarege Yigzaw and Gebremedin Haile are the ideal choices on the three-man shortlist for Beting Ethiopian Premier League Coach of the season crown. Yared Gemechu, Zeray Mulu and Yitagesu Endale are the likely nominees to join them in contention for the award.
Despite a huge financial constraint in the club and limited resources to sign star players, Zerihun managed to navigate through tough times to retain the league title making the overall title tally into record 16 times. as well setting a new record turmoil in the club thus limited choice of having a huge turmoil in the clubLeading Kidus Giorgis to the EPL title for a second year in a row and just two defeats in the record, Zerihun is the hottest favorite to crown Best Coach of the year.
Rebuilding a relegation-lived Baherdar Ketema is something but leading that very club into serious title contention is a completely different matter. And that is what makes Degearege Yigzaw a serious contender for the accolade. Degarege finished runner-up s booking a place in Confederation Cup spot for the first time in the club’s history.
Gebremedin has enjoyed a successful season in the clubs debut premier league season guiding Ethiopia Medin into third spot finish. Seven consecutive wins following season opening 7-1 thrashing by champions Kidus Giorgis, Medin has not only finished third but also became a side to reckon a strong title contender in the coming season.
Capital Sport believes the premier league governing body and the League Committee should have announced an official list for the accolade.