By Befikadu Eba

You know the scene. You have just had a fantastic meal at that popular butchery in Bole, the one everyone whispers about. The meat was sublime, the atmosphere electric. The bill comes, you pull out your phone, and the waiter gives you a number. You look for a business name, but it’s just a personal name—”Abebe Lemma” or “Selamawit Tesfaye.” You raise an eyebrow, and the waiter just shrugs with a practiced, reassuring smile. “It’s the same,” he says. So you transfer the money, walk out satisfied with the meal, but with a nagging feeling that something was off. You have no receipt, just a digital trail leading to an individual, not the bustling enterprise you just patronized.

Walk a little further, to a legendary spice shop in the same area. You buy a kilo of berbere that promises to be life-changing. The payment process is the same. A mobile number scribbled on a piece of paper, a transfer to a personal account. No paper trail, no official record of the sale. It is just between you, the shopkeeper, and their personal bank account.

Then there is the more sophisticated version. You go to a renowned eatery in Piassa, a place with a reputation that draws crowds. This time, they seem official. They present you with a receipt, even one with a barcode. Feeling a sense of civic pride, you scan the code, expecting to see the company’s details. Instead, your phone screen flashes a disheartening message: “Organization does not exist.” When you point this out, the manager’s smile doesn’t falter. “Oh, the system has a problem,” he will say smoothly. “For now, you can just transfer to this number.” And the alternative, once again, is a personal mobile money account.

What we are witnessing here, in the daily commerce of Addis Ababa, is not just a minor logistical hiccup. It is a brazen, systematic, and widespread campaign of tax evasion, hiding in plain sight. These are not back-alley operations; these are often well-known spots, some owned and run by formal Private Limited Companies. They have the legal structure of a serious business but operate in the shadows when it comes to their financial responsibilities. The question that screams for an answer is a simple one: in a country straining to build its future, why is this allowed to continue?

Let me be clear about what is happening. When you transfer money to a waiter’s personal Wallet account, that revenue effectively vanishes from the official economy. It becomes untraceable for the tax authorities. That transaction will never appear on the company’s sales ledger. It will never contribute to the Value Added Tax (VAT) that is baked into the price you pay. It will never be counted as profit for corporate income tax purposes. The entire transaction, no matter how large, becomes a secret between the business and the customer, with the state deliberately cut out of the loop.

The excuse often given is one of convenience. “It’s faster.” “The business account is complicated.” But this is a smokescreen. The real mission here is to evade. Every birr transferred to a personal account is a birr stolen from the collective purse. It is a birr that does not contribute to the roads we drive on, the public schools our children attend, the hospitals we rely on, or the lights that keep our cities bright. It is a direct diversion of resources away from the nation’s development and into private pockets, with a blatant disregard for the social contract.

The irony is as thick as the injera at these establishments. Consider the contrast. A salaried civil servant, a teacher, or a nurse has every birr of their income meticulously accounted for. Pay-AsYou-Earn (PAYE) tax is deducted at source, with no escape. There are no personal accounts to hide behind. Similarly, larger, more regulated corporations and those dealing with these corporates – operate under the constant gaze of the tax authority. Their books are audited, their invoices are serialized, and their bank statements are scrutinized. They cannot afford to play these games. So we have created a bizarre two-tier system: one set of rules for the salaried employee and the formal large business, and a wild west for a segment of the lucrative hospitality and retail sector.

This is not a victimless crime. The impact is profound and felt by every single citizen. When these high-turnover businesses opt out of their tax duties, the government’s revenue target faces a shortfall. This creates a vicious cycle. To meet essential budgetary needs, the tax authority is forced to squeeze those who are already compliant – the salaried workers and the large corporations. Tax rates for the visible economy may rise, further burdening the honest and creating a sense of injustice that corrodes the social fabric. It also punishes compliant small businesses, who operate at a competitive disadvantage because they are actually paying the taxes their rivals are dodging.

So, what is to be done? The call for the tax authorities to “do the needful” is not just a whisper; it is a public demand for fairness and justice. The beautiful, and perhaps tragic, thing about this digital age is that it leaves a trail. The very technology that enables these personal transfers also has the potential to expose the fraud. Imagine a simple, targeted enforcement campaign.

Undercover officers could dine at these establishments, make the transfers to the personal accounts, and keep the receipts as evidence. The ERCA could then collaborate with financial institutions to follow the digital money trail. If a single personal mobile money or bank account is receiving hundreds of payments a day, often in round figures matching menu prices, it does not take a forensic accountant to deduce that this is not personal pocket money but disguised business revenue. The law provides for severe penalties for such acts: massive fines, back-payment of all evaded taxes with interest, and even criminal prosecution and closure of the business.

But enforcement alone is not the only answer. The government must also make compliance easier. Simplifying the process for businesses to obtain and use certified electronic cash registers (ECRs) that directly report to the ERCA would be a start. Promoting business-grade mobile money accounts that are seamlessly linked to the tax system is another. There needs to be a public awareness campaign, educating customers to demand valid, barcoded receipts and to be wary of transfers to personal accounts. We, as consumers, have a role to play. By accepting these shady payment terms for the sake of convenience, we become complicit in a system that ultimately robs us all.

The situation in Addis Ababa’s eateries and shops is a microcosm of a larger national challenge. It is a test of our commitment to building a fair and equitable society. It is a choice between a future where everyone pays their fair share for the common good, or one where the privileged and the cunning operate by their own rules, leaving the burden of nation-building on the shoulders of the salaried and the compliant. The next time a waiter gives you a personal account number, remember that you are at a crossroads. You are not just paying for a meal; you are being asked to participate in a system that is undermining the very foundations of your country. It is time we all demanded the receipt.

Befikadu Eba is Founder and Managing Director of Erudite Africa Investments, a former Banker with strong interests in Economics, Private Sector Development, Public Finance and Financial Inclusion. He is reachable at befikadu.eba@eruditeafrica.com.

Ethiopia embraces central bank digital currency under its new National Bank Proclamation, aiming for transparency and financial inclusion — but concerns over privacy, control, and readiness persist.

By Cherenet Daba

The Dawn of Digital Money

Money is changing. We have moved from gold coins to banknotes, and from debit cards to mobile wallets. The newest shift is Central Bank Digital Currencies (CBDCs). These are digital versions of national currency issued by the state, meant to make transactions faster, cheaper, and traceable. Unlike cryptocurrencies like Bitcoin, which are decentralized and unregulated, CBDCs are fully managed by central banks. Each digital unit is a direct claim on the state, making it the most official kind of digital money so far. Countries around the world are looking into CBDCs to update their economies and improve monetary policy. China’s Digital Yuan is leading the way, with pilot projects also happening in the EU, India, and the U.S. According to the IMF, more than 130 countries are now researching or developing CBDCs.

“Money won’t create success, the freedom to make it will.” – Nelson Mandela

How the Concept Emerged

CBDCs started as a response to two trends. First, private digital currencies like Bitcoin and stablecoins emerged, challenging central banks’ control. Second, economies underwent digital transformation, causing traditional banking systems to fall behind mobile and online payments. Central banks saw that without innovation, they could lose their monetary authority. A CBDC helps the state keep control while updating money itself, bridging the gap between fiat and digital finance.

“Technology is a double-edged sword. It can either empower or enslave us.” – Elon Musk

Promise and Purpose

Advocates say CBDCs can improve payment efficiency by enabling instant, low-cost transactions. They also promote financial inclusion by allowing anyone with a phone to hold a digital wallet. CBDCs can increase transparency and reduce corruption by digitizing transactions. Additionally, they can strengthen monetary policy through real-time liquidity management. Furthermore, CBDCs can support innovation by creating a foundation for Fintech growth. For developing economies, these features are especially transformative. They can bring millions into the financial system, reduce reliance on cash, and help fight money laundering and tax evasion.

Africa’s Digital Experiment

Across Africa, countries are testing CBDCs to tackle long-standing financial issues. Nigeria launched the eNaira in 2021. Ghana, South Africa, and Kenya are running pilot programs. For many African nations, the goal is clear: they want to formalize the large informal economies that dominate local trade. Over 60% of African transactions happen outside the formal banking system. CBDCs, which are linked to mobile payment platforms, could change this situation. However, risks are present. In areas with weak digital infrastructure or strict governments, CBDCs might increase surveillance and financial exclusion instead of resolving these problems.

“Seek ye first the political kingdom.” – Kwame Nkrumah.

Ethiopia’s Step into the Digital Era

Ethiopia’s new National Bank Proclamation (2025) allows the National Bank of Ethiopia (NBE) to issue and regulate a central bank digital currency, informally called the “Digital Birr.” This move is part of the government’s Digital Ethiopia 2025 strategy, which aims for a cash-light economy driven by technology. The Digital Birr is expected to work alongside physical currency and may connect to national ID systems and mobile wallets.

Ethiopia’s situation makes this step both timely and complicated. The informal economy dominates trade. Corruption and cash transactions weaken transparency. Financial inclusion is low, especially in rural areas. Technological capacity is limited, and there are gaps in digital literacy. Additionally, political centralization raises concern about surveillance and control. If handled well, the CBDC could transform Ethiopia’s economy. If not, it could worsen existing inequalities and fears.

The Blessings: Promise for a New Economy

Ethiopia can benefit in many ways. Digital records can lower under-the-table deals and improve oversight in public spending. They can also formalize the economy by tracking transactions that currently avoid taxes. A mobile-based CBDC could serve millions of people who do not have access to traditional banks. This would allow for efficient monetary policy and real-time adjustments by the NBE. Moreover, a well-executed digital currency could boost local innovation and fintech development, leading to job creation and technological progress.

“A people without knowledge of their past is like a tree without roots.” – Marcus Garvey.

The Curses: Between Surveillance and Suppression

Digital transformation without freedom can become a trap. Government access to every transaction could stifle dissent and limit personal freedom. Poor connectivity or low literacy might exclude rural populations. Centralized control could allow the freezing or monitoring of citizens’ funds during political disputes. Limited cybersecurity could put the system at risk of major breaches. Additionally, public distrust could increase if the system is not transparent.

“Freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed.” – Martin Luther King Jr.

Balancing Control and Confidence

For CBDC to succeed in Ethiopia, trust is essential. The National Bank must ensure strong data protection laws to protect user privacy, create independent oversight to prevent abuse of power, and start public education programs to improve digital literacy and acceptance. Working with private banks and Fintechs will also be important.

“Trust is the currency of the future.” – Jack Ma.

The Verdict: Between Hope and Hesitation

Ethiopia’s CBDC is an important step in its financial history. It offers transparency, inclusion, and modernization. However, it also risks becoming a tool for surveillance and centralization. Its success relies not just on technology but on governance, transparency, and public trust. The Digital Birr could either empower the people or strengthen the state. This choice will shape Ethiopia’s digital future.

“The future belongs to those who prepare for it today.” – Malcolm X.

Cherenet Daba is Principal Auditor at Zemen Bank & Business Advisor he can be reached via Cherinetdaba4@gmail.com or Cherenet.Daba@zemenbank.com

By Niall McNulty

The opportunities that artificial intelligence (AI) offer African teachers and students are immense; the AI education market in the Middle East and Africa is projected to hit $1.7 billion by 2030. Yet in Sub-Saharan Africa, where student–teacher ratios can reach 50:1 and many children still lack access to quality learning resources, the need for innovative solutions is urgent. What excites me most about AI in African education is the potential to address persistent inequalities in ways that haven’t been possible before.

For too long, students in under-resourced schools have had fewer opportunities simply because their teachers lacked access to support, materials, or professional development. AI can change this dynamic fundamentally, making world-class support accessible even in the most remote classrooms.

Across Africa, AI has the potential to drive change in schools, but only if it is shaped to fit the realities of African classrooms, rather than forcing classrooms to adapt to the technology. The real promise lies in AI’s power to personalise learning at scale, helping teachers meet the needs of every student in classes that are often large and diverse. When AI is guided by local priorities, cultural context and teacher expertise, it stops being a futuristic add-on and becomes a practical ally.

The challenges

Three obstacles stand out most clearly from our work across the continent.

Connectivity remains a major challenge across much of Sub-Saharan Africa. Teachers want to use AI tools but can’t always access them when they need them most. That means that classroom tools need to have offline capabilities, such as pre-generated material, and tools need to work effectively with intermittent internet connections.

Language barriers present another complexity. While many teachers are comfortable teaching in English, this is not their students mother tongue and they often need to explain concepts in local languages. We’re working on multilingual capabilities through researching the African language capabilities of leading AI chatbots, but this remains an ongoing challenge that requires careful cultural and linguistic adaptation.

Perhaps most importantly, we’re hearing that teachers want more time to explore and experiment with AI tools. The demanding nature of teaching, particularly in resource-constrained environments, means that many educators struggle to find space for learning new technologies. If adoption is to succeed, professional development and time allowances must be built into the process from the start.

Making AI familiar

The beauty of AI integration in education lies not in expensive hardware or complex software, but in leveraging the tools teachers already have access to. Through our work across Sub-Saharan Africa, we’ve discovered that the most practical entry point is often the smartphone in a teacher’s pocket.

Our WhatsApp teacher support AI chatbot project in South Africa demonstrates this perfectly. Teachers are already comfortable with WhatsApp; they understand how to send messages, and they can access support instantly without needing new apps or training on unfamiliar platforms. When a teacher in a rural classroom needs help differentiating a lesson for mixed-ability learners or wants quick feedback on a lesson plan, they can simply message our AI assistant and receive immediate, contextualised support.

This approach works because it builds on existing digital behaviours rather than requiring teachers to learn entirely new systems. We’ve found that teachers who start with familiar interfaces, such as WhatsApp, develop confidence that naturally extends to other AI tools over time.

Empowering educators as architects of learning

At Cambridge, we believe the power of AI in education lies in a human-centred approach that starts “where teachers are,” respecting their agency and empowering them as architects of learning, not just consumers of technology.

It is this human-centred approach that is key to helping students navigate change and use technology effectively. A recent Cambridge report, ‘Preparing learners to thrive in a changing world’, which captures the views of nearly 7,000 teachers and students across 150 countries, shows that while technology is widely embraced to support teaching and learning, over a third of teachers surveyed (34%) selected over-reliance on technology as the greatest challenge that technology might pose in preparing students for the future. In this age of AI, we believe that it is essential for students to develop a solid foundation of subject knowledge to help them interpret information critically and effectively.

This insight is one reason we are especially focused on helping African education systems avoid the challenges other regions have faced with technology adoption. Our approach emphasises teacher training, infrastructure readiness, and gradual implementation, rather than rapid, large-scale deployments that too often fail to deliver their intended outcomes.

We’ve structured our Getting Started with AI in the Classroom guide around practical scenarios that teachers encounter daily and our professional development programme for STEM teachers exemplifies this philosophy too.

Rather than starting with “here’s how to use this AI tool”, we begin with “here’s how AI can solve real problems you face in your classroom”. Teachers learn to evaluate AI outputs critically, asking questions like: Does this explanation match my students’ cultural context? Are there biases in the examples provided? How can I adapt this suggestion to fit my teaching style?

A future built for teachers

Teachers in Africa are incredibly creative and adaptable, and we’re starting to see them use AI in ways that we never anticipated. They’re adapting tools to local languages, incorporating traditional knowledge systems, and developing approaches that reflect their deep understanding of their communities. This innovation from the ground up suggests that AI integration in African classrooms will look quite different from implementations in other parts of the world, and that’s exactly as it should be.

Our vision is AI that helps preserve what’s best about African education while addressing its most persistent challenges. This means supporting the strong relationships between teachers and students, the collaborative learning approaches, and the community connections that characterise many African classrooms, while using AI to reduce administrative burden, enhance personalisation and provide teachers with better support.

To make this vision real, three things are essential: deeper investment in teacher training, stronger collaboration with ministries and local tech innovators, and sustained infrastructure development to bridge connectivity gaps.

Ultimately, I’m excited about a future where every African student has access to excellent education, supported by teachers who feel confident, well-resourced and professionally fulfilled. AI won’t create this future by itself, but it can be a powerful tool in the hands of dedicated educators working toward that goal.

Niall McNulty is AI Product & Innovation Leader, Cambridge University Press & Assessment