The Ethiopian Deposit Insurance Fund (EDIF), aimed at enhancing confidence in the financial sector, has embraced the recent surge in Treasury bill (T-bill) yields, identifying it as a crucial factor for revenue growth.

Since becoming operational in 2023, EDIF has increasingly favored the rising T-bill rates at National Bank of Ethiopia (NBE) auctions for investments.

Merga Wakweya, Director of the Operation Directorate at EDIF, stated that the fund primarily invests in T-bills, which previously offered modest returns of less than 10% annually.

However, recent months have seen a shift, with yields becoming more profitable. This change bolsters EDIF’s financial capacity and reinforces depositor confidence.

“Previously, the low T-bill yields were a concern, as they limited our ability to mobilize sufficient resources for potential payouts,” Merga remarked during a press conference on Tuesday, April 15. “Now, the returns have become far more attractive.”

He noted that similar deposit insurance institutions in other countries also prioritize liquid investments like T-bills for easy access to funds when necessary.

Currently, annual T-bill rates have risen to around 18%, reflecting a significant increase in just a few months.

The NBE’s mid-February report on Monetary and External Sector Developments indicated that one-year T-bill rates surged by 57% since the start of the fiscal year, climbing from 10% in July to 15.7% by mid-February.

This adjustment aligns with inflation (13.6% as of March) and the central bank’s policy rate of 15%.

The rate hike follows recommendations from the International Monetary Fund (IMF), which advised the NBE to adjust interest rates to attract more bidders and improve resource mobilization.

The IMF emphasized the necessity for positive real T-bill yields in line with monetary policy. However, it acknowledged that monetary policy transmission had been weak, with T-bill rates historically capped at 10-11% due to factors such as pension fund demand at negative real rates and previous practices of rejecting higher bids.

According to EDIF CEO Desalegn Ambaw, the fund collected 5.2 billion birr in premiums during the first nine months of the 2024/25 fiscal year, marking an 8.3% increase compared to the same period last year. This growth enhances EDIF’s capacity to protect depositors and support Ethiopia’s financial stability.

During this reporting period, EDIF generated 689 million birr from investments, with its total investment portfolio expanding to 12.1 billion birr.

The majority of these investments (11.2 billion birr) were allocated to T-bills, while the remaining 944.3 million birr was held in Mudarabah time deposits at the Commercial Bank of Ethiopia.

Premium contributions primarily came from conventional deposits (91%), with the remainder from interest-free deposits (9%). Total income reached 5.9 billion birr, comprising premiums (88.3%) and investment returns (11.7%).

For premium generation, private banks contributed 2.7 billion birr (51.3%), microfinance institutions provided 59.49 million birr, and the state-owned Commercial Bank of Ethiopia added 2.5 billion birr (47.5%).

With T-bill yields now exceeding inflation, EDIF anticipates stronger revenue streams, further solidifying its role in safeguarding Ethiopia’s banking sector.

A groundbreaking campaign, “Correct the Map,” has been launched by Africa No Filter and Speak Up Africa to challenge the long-standing misrepresentation of Africa on world maps. The initiative seeks to correct the distorted view of Africa’s size and significance, which has been perpetuated by the widely used Mercator map projection.

The Mercator projection, created in the 16th century for maritime navigation, artificially enlarges regions near the poles while shrinking those near the equator, such as Africa. This distortion makes Africa appear much smaller than it actually is, often depicted as similar in size to Greenland, despite being 14 times larger. This misrepresentation has profound implications for how Africa is perceived globally, influencing decisions in education, policy-making, and economic development.

The “Correct the Map” campaign calls on international organizations, including the UN, World Bank, and BBC, to adopt more accurate map projections like the Equal Earth map. This initiative invites institutions, educators, and media platforms to pledge their commitment to using maps that depict Africa’s true size through a global petition and campaign charter.

Moky Makura, Executive Director of Africa No Filter, emphasized that Africa’s misrepresentation is not just a cartographic error but a narrative issue. “By reducing the size of Africa, we are subconsciously downplaying its importance,” she said.

Yacine Djibo, Founder and Executive Director of Speak Up Africa, added, “Decisions about Africa—economic, political, and developmental—are being made using a false reference point. We need the world to see Africa as it truly is.”

The campaign argues that the world cannot afford to continue making decisions based on a 400-year-old distortion. By adopting more accurate map projections, the initiative aims to promote a more balanced understanding of Africa’s role in the world.

As the campaign gains momentum, it is expected to influence not only how maps are used but also how Africa is perceived and valued in global discussions. The success of this initiative will depend on widespread support from institutions and individuals committed to a more accurate representation of the world.

The global economy is facing mounting pressures and uncertainty that are expected to slow growth to just 2.3 percent in 2025, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD). This forecast marks a significant deceleration and signals a shift toward a recessionary phase, with subdued demand, trade policy shocks, and financial turbulence weighing heavily on economic prospects worldwide.

Despite a somewhat stronger-than-expected growth rate of 2.8 percent in 2024, the outlook for 2025 is clouded by unprecedented levels of policy uncertainty—the highest recorded this century. The combination of geopolitical tensions, tightening macrofinancial conditions, and trade disruptions is creating a fragile environment, particularly for developing countries.

The report highlights that the uptick in global trade seen in late 2024 and early 2025 was largely driven by front-loaded orders, a momentum expected to fade or even reverse as new tariffs come into effect. Trade policy uncertainty is already impacting business confidence and long-term planning, with many firms delaying investments amid fears of further disruptions.

Capital flows to developing countries remain volatile, with investor caution intensified by tight financial conditions and systemic risks. This volatility threatens to undermine progress toward the Sustainable Development Goals, as fiscal priorities in major economies shift away from social spending toward defense budgets, and official development assistance declines.

While some regions such as Sub-Saharan Africa are projected to maintain moderate growth—around 3.6 percent in 2025—many low-income countries face a convergence of risks including heavy debt burdens and weakening domestic demand. The report warns that continued geoeconomic confrontations could trigger a “perfect storm” for poorer nations, exacerbating vulnerabilities and slowing development.

Commodity markets are not immune to the uncertainty, with fluctuating prices adding further pressure on economies reliant on exports of raw materials. Meanwhile, the expansion of commercial services has remained relatively firm, offering a modest buffer against the downturn in merchandise trade.

UNCTAD urges policymakers to avoid economic fragmentation and instead strengthen regional and international cooperation to build resilience. Coordinated policy responses, investment in sustainable development, and support for South-South trade partnerships are seen as critical to mitigating the risks posed by the current global environment.

The report underscores the need for decisive action to navigate the complex challenges ahead, emphasizing that without concerted efforts, the global economy risks slipping into a prolonged period of subdued growth and heightened instability.

As the global economy contends with rising protectionism, shrinking development aid, and mounting debt costs, African leaders and business executives are gathering in Abidjan for the 12th Africa CEO Forum on May 12-13, 2025. The summit, organized by Jeune Afrique Media Group and co-hosted by the International Finance Corporation (IFC), brings together 2,000 high-level participants—including over 900 CEOs, heads of state, and global investors—to chart a path for Africa’s economic future under the theme: “Can a New Deal Between State and Private Sector Deliver the Continent a Winning Hand?”

This year’s forum unfolds against a backdrop of economic headwinds. Many African countries are grappling with reduced external support and high debt-servicing burdens, while global trade is increasingly shaped by protectionist policies. Yet, amid these challenges, the continent is also witnessing new opportunities: South-South trade and investment are on the rise, and the African Continental Free Trade Area (AfCFTA) is beginning to reshape intra-African commerce.

Amir Ben Yahmed, President of the Africa CEO Forum, emphasized the urgency of the moment “The current transactional environment gives Africa the ultimate incentive to remove the barriers still holding back its private sector, as no other alternative can match its adaptive speed, innovative capacity, and strategic agility. This is the core mission of the Africa CEO Forum, and we will continue to champion this vision together.”

The 2025 forum centers its agenda on three pillars: enhancing governance, refining public policies, and accelerating the AfCFTA. Participants will explore how improved governance and accountability can foster a more business-friendly environment, ensuring transparency and effective decision-making. Strategic policy reforms are needed to address Africa’s structural challenges—such as promoting value-added industries, industrialization, and leveraging the continent’s energy and labor potential.

Accelerating AfCFTA implementation is seen as critical for unlocking intra-African trade, improving infrastructure, and positioning Africa as a more influential global economic player. Workshops and debates will tackle topics including AI-powered governance, the future of African energy, supply chain resilience, and the evolving role of local financing as development aid diminishes.

A major highlight of this year’s edition is “The Great Debate”—the first-ever head-to-head session featuring all five official candidates for the presidency of the African Development Bank (AfDB). Moderated by Nicholas Norbrook, Managing Editor of The Africa Report, the debate will see Amadou Hott, Sidi Ould Tah, Swazi Tshabalala, Mahamat Abbas Tolli, and Samuel Maimbo present their visions for the Bank’s future and Africa’s economic development. Their plans for industrialization, climate-aligned infrastructure, and private capital mobilization will be closely watched as the continent seeks dynamic leadership in a pivotal period.

Makhtar Diop, IFC’s Managing Director, underscored the importance of public-private collaboration “By advancing locally driven solutions and enhancing their investment readiness, we are working with Africa’s private sector leaders to pioneer new and sustainable models of progress.”

The Africa CEO Forum is widely recognized as the continent’s leading platform for dialogue between the public and private sectors. This year’s event will welcome a distinguished roster of attendees, including President Alassane Ouattara of Côte d’Ivoire, President Bassirou Diomaye Faye of Senegal, President John Dramani Mahama of Ghana, President Taye Atske-Selassie of Ethiopia, and President Cyril Ramaphosa of South Africa, alongside prime ministers, ministers, and CEOs from leading African and international companies.