In a bid to address significant challenges within its financial management framework, the Ethiopian government is implementing a Treasury Single Account (TSA) system. This initiative, led by the Ministry of Finance (MoF), aims to streamline government cash management by consolidating funds into a single account, thereby enhancing transparency and efficiency.

The existing system has been criticized for lacking transparency and efficiency, leading to higher borrowing costs and difficulties in meeting financial obligations. The widespread use of multiple bank accounts for government transactions has obscured the actual financial balance, creating thousands of unnecessary accounts and complicating cash management.

Bizuneh Bekele, a financial expert, highlighted that the reliance on monetary rates rather than active management exacerbates these issues, often resulting in delayed payments and the need for costly loans. The practice of using “B” accounts for budget allocation has weakened zero-balance accounting principles, further complicating financial oversight.

In response, the MoF, in collaboration with the National Bank of Ethiopia (NBE) and the Commercial Bank of Ethiopia (CBE), is actively working on TSA implementation. This system will integrate government funds into a single account, providing a clear picture of the financial position and enabling informed decision-making.

Preparatory work is underway to integrate technological systems between these entities, laying the groundwork for the TSA. State Minister Eyob Tekalgn emphasized that the TSA will manage government funds efficiently, contributing significantly to national development by ensuring proper use of revenues.

A significant initiative launched last year by the Ministry of Finance and FSD Ethiopia has seen a marked increase in digital payments within federal institutions, rising from 46% to 96% over the past year. This shift from paper-based processes to digital systems aims to enhance transparency and integrate disparate work into a unified structure.

To ensure strong governance, a TSA management committee has been established, headed by the Ministry of Finance and comprising key stakeholders. An e-payment usage growth monitoring system has also been implemented to bring unprecedented transparency to these changes.

Public events in Ethiopia’s capital have evolved into battlegrounds for historical narratives and political power, according to a recent study by the Ethiopia Peace Research Facility (PRF). The report, titled “Politicizing Public Events in Addis Ababa,” examines how events like Adwa Victory Day, the Irrecha festival, Meskel Square commemorations, and the Great Ethiopian Run have become platforms for advancing competing agendas and fostering social tensions.

Since the 2018 elections, Ethiopia has witnessed a significant shift in its political landscape, marked by the clash between two dominant narratives: the “Great Tradition” (GT) narrative, which emphasizes central state power and national unity under Prime Minister Abiy Ahmed, and “Counter-Histories” (CHs), which seek to elevate marginalized voices and challenge dominant interpretations.

The Adwa Victory Day celebrations illustrate this conflict, with the GT narrative glorifying Emperor Menelik II’s leadership while CHs highlight the contributions of marginalized groups often excluded from official accounts. “Historical events often become hotbeds of memory, where political alignment and interpretations of socio-economic realities shape,” the report states.

Once mere memorials, public events in Addis Ababa have transformed into platforms for political expression. The Irrecha festival, for example, now symbolizes the struggle for cultural recognition, while races and other events reflect tensions between religious and historical identities. The Great Ethiopian Run has become a forum for political expression, illustrating how these events actively contest historical memories and reflect broader power dynamics in Ethiopian society.

The report emphasizes that historical interpretation lacks inherent objectivity, reflecting diverse perspectives shaped by unique societal experiences. This multifaceted nature of history is not a flaw but a reflection of its dynamic character. Competing narratives play a central role in shaping collective memory and grievances.

The study urges policymakers to consider historical power inequalities in national processes such as national dialogue, transitional justice initiatives, and restorative programs. Addressing past abuses is crucial for encouraging reconciliation and building a more just society. “Current national processes in Ethiopia should carefully consider the role of historical power imbalances in shaping collective memory and grievances,” the report recommends.

The Ethiopian Agriculture Business Corporation (EABC) has dismissed complaints regarding the fertilizer procurement process, despite the country allocating over one billion dollars annually to acquire various types of fertilizer.

Recent changes to the bidding process have raised concerns among international suppliers.

EABC has shortened the bidding period from 45 days to just two weeks, which some companies claim is too brief and undermines transparency. They argue that this compressed timeline seems designed to limit competition, favoring only a select few suppliers.

“The current bidding process appears predetermined to restrict participation,” some suppliers told Capital. “While we understand the necessity for swift procurement of this strategic commodity, a two-week window is often insufficient to arrange bid security. A more reasonable timeframe would foster greater transparency and attract more competitive offers.”

These suppliers also stated that major global companies are interested in participating but are deterred by the tight schedule, despite their ability to provide fertilizers at competitive rates.

EABC has rejected these complaints, asserting that the new procurement directive, implemented in October 2023, was introduced under government guidance to enhance efficiency.

Gashaw Aychiluhim, EABC’s Head of Corporate Communication and Social Affairs, explained that the 15-day bidding period aligns with practices in other countries, given the high volatility of fertilizer prices.

“The shorter timeframe is not unique to Ethiopia,” Gashaw told Capital, referencing the new directive issued by the Ministry of Finance. “Many nations procure fertilizers within two weeks due to market fluctuations. Companies must adapt to the given schedule if they wish to compete.”

He also emphasized that EABC operates under strong oversight, with high-ranking officials on its board, including Agriculture Minister Girma Amentie (Chair), Transport and Logistics Minister Alemu Semie, Cabinet Affairs Minister Alemtsehay Paulos, and National Bank of Ethiopia Governor Mamo Esemelealem Miheretu.

Gashaw encouraged dissatisfied bidders to formally raise their concerns with EABC’s leadership.

As a subsidiary of Ethiopian Investment Holdings, EABC plays a crucial role in supplying agricultural inputs and marketing within the sector.

This year, Ethiopia plans to import over 25 million quintals of fertilizer, costing more than one billion dollars, for the 2024/25 harvest season.

Meanwhile, the government has announced plans to reduce reliance on imports by establishing a domestic fertilizer industry. Prime Minister Abiy Ahmed recently declared that a USD 3 billion fertilizer complex will be Ethiopia’s next flagship project, following the Grand Ethiopian Renaissance Dam (GERD), which is expected to officially inaugurate in the third quarter of 2025.

While the government prefers private sector-led development of the fertilizer plant, it is open to public-private partnerships or full state funding if private investment falls short.

This initiative aims to leverage Ethiopia’s natural resources to cut import costs and strengthen the agricultural sector, a cornerstone of the nation’s economy.

As Ethiopia advances with these plans, the debate over procurement transparency and efficiency remains a critical issue for both international suppliers and local stakeholders.

Ethiopia, Africa’s leading honey producer and ranked tenth globally, has set an ambitious target to increase honey production to over 375,000 tons in the 2024/25 fiscal year. However, despite its vast potential, the sector faces significant market challenges that hinder producers from securing fair prices and accessing direct market linkages.

Speaking at the Youth Education Summit in Addis Ababa, State Minister of Agriculture, Dr. Fikru Regassa, highlighted the government’s vision to make beekeeping a key driver of youth employment and rural economic development. “Ethiopia has long been a country with a tradition of beekeeping. However, we are now unlocking its real economic, social, and environmental potential,” he stated.

With the capacity to support 44 to 62 million bee colonies, the sector could create jobs for 7 to 10 million young people. However, local producers in high-yielding regions like Oromia and southwestern Ethiopia report difficulties in finding suitable markets. Many are forced to sell their honey at low prices due to the lack of a direct market system.

“Although we produce large quantities of honey, we struggle to get fair prices because there is no system that allows us to sell directly,” said one producer. Currently, a kilogram of honey sells for less than 400 birr at the production level but fetches up to 800 birr in Addis Ababa, underscoring a significant price disparity.

Ethiopia exports honey to countries such as Sudan, Norway, Saudi Arabia, the UK, Japan, and the United States. While this reflects strong international demand for Ethiopian honey, local producers have yet to fully benefit from these opportunities due to systemic issues in the value chain. Experts estimate Ethiopia’s annual honey production at 45,000 metric tons but believe it has the potential to produce up to 500,000 tons of honey and 50,000 tons of beeswax annually.

The International Centre for Insect Physiology and Ecology (icipe), in collaboration with the Mastercard Foundation, is working on a five-year project called MoYESH to empower farmers and unemployed youth in the beekeeping value chain. While this initiative has helped thousands of young entrepreneurs earn livelihoods and create jobs, persistent challenges such as limited access to finance, weak market linkages, and inadequate policy frameworks continue to hinder progress.

Dr. Abdou Tenkouano, Director-General of icipe, emphasized these hurdles during the summit: “Critical challenges such as access to finance and market linkages remain barriers for producers.” He added that addressing these issues requires targeted interventions such as specialized financial instruments and policy reforms that eliminate gender-based and systemic discrimination in rural areas.

Dr. Fikru Regassa underscored the need for significant investment in expanding access to finance, land, inputs, and infrastructure for youth-led agricultural businesses. He also called for stronger public-private partnerships in marketing and processing honey products while leveraging opportunities created by initiatives like the African Continental Free Trade Area (AfCFTA).

“Let us seize this opportunity to make beekeeping the foundation of Ethiopia’s green, inclusive, and youth-led rural transformation,” he urged stakeholders.