The African Union (AU) is facing a pivotal moment as it grapples with sweeping international aid cuts and the imposition of new tariffs on African exports. At the opening of the 24th extraordinary session of the Executive Council in Addis Ababa, African Union Commission Chairperson Mahmoud Ali Youssouf issued an urgent call for the continent to embrace self-reliance and economic unity amid mounting external pressures.

Addressing foreign ministers and delegation leaders, Youssouf painted a sobering picture of Africa’s current predicament. “The changing global situation requires greater confidence and cooperation between African countries,” he said, warning that the reduction in aid and new trade barriers could disrupt critical sectors such as health, food security, and trade.

The AU’s concerns are underscored by recent decisions from major partners, particularly the United States, to scale back development assistance. The U.S. Agency for International Development (USAID) has slashed 83% of its aid to sub-Saharan Africa, a region that had previously received 40% of the agency’s global budget. These cuts threaten vital programs in humanitarian relief, health, and economic development, with countries like Somalia, Liberia, and Mozambique among the most affected.

The sudden withdrawal of support jeopardizes progress made in combating diseases such as HIV and Ebola and puts at risk ongoing efforts to strengthen food security and economic resilience. “The cessation of these health programmes would favour an upsurge of these deadly diseases for local populations,” analysts warn.

Compounding the challenge, new tariffs imposed by the United States on African products threaten to weaken the economies of member states. The African Growth and Opportunity Act (AGOA), which has long allowed eligible African countries to export goods to the U.S. tariff-free, is now under review, raising fears of further trade disruptions.

International observers, including the United Nations Development Programme (UNDP), have described the tariffs as a “wake-up call” for Africa to move beyond reliance on foreign aid and focus on industrialization and value addition. “The current tariff situation pushes us even harder because you can’t just be an oil economy anymore… you have to be forced to look at the non-oil sector, to industrialize, to do a little bit more manufacturing,” said UNDP Regional Director for Africa, Ahunna Eziakonwa.

In response, Chairperson Youssouf called on AU member states to adapt by mobilizing domestic resources and engaging the private sector, diaspora, and philanthropists to meet financial needs. He stressed the importance of reducing excessive dependence on foreign partners and building sustainable financial independence.

A central pillar of this strategy is the full implementation of the African Continental Free Trade Area (AfCFTA). “AfCFTA and its various mechanisms must increase their power,” Youssouf urged, emphasizing the need to open intra-African markets, remove trade barriers, and transform current challenges into opportunities.

Experts agree that fragmented national responses to global trade challenges are ineffective. Instead, a united economic front, leveraging the AfCFTA, would give Africa greater bargaining power on the world stage and help reduce vulnerability to external shocks.

Beyond economics, Youssouf also addressed the continent’s evolving peace and security landscape. He acknowledged the United Nations’ role but insisted that African-led efforts are vital for stability. “Africa has been put in charge of peacekeeping, arbitration, and defense operations… to help stabilize and restore peace through multiple crises,” he said.

Tete Antonio, Angola’s Minister of External Relations and Chairperson of the Executive Council, echoed these sentiments, stressing that Africa’s commitment to peace and security is the foundation of its development and that African-led solutions are essential.

Concluding his address, Youssouf urged immediate and unified action from the Executive Council and member states. “Hard times are coming,” he warned, “but African countries will only successfully overcome these challenges through resilience and adaptation, mobilizing alternative funding to carry out critical tasks.”

Africa has solidified its position as the global leader in mobile payments, contributing an impressive $190 billion to its GDP in 2024, according to the GSMA’s *State of the Industry Report on Mobile Money 2025*. The continent accounted for 53% of global mobile money accounts and processed over $1 trillion in transactions last year, showcasing its robust and mature digital payment ecosystem.

The report highlights Africa’s dominance in mobile money adoption, with 1.1 billion registered accounts out of a global total of 2 billion. This milestone was achieved in less than two decades, with the second billion accounts added in just five years—twice as fast as the first.

Africans are not only registering accounts but actively using them. Monthly active users reached 283 million in 2024, accounting for more than half of the global total. The continent processed $1.1 trillion of the $1.68 trillion transacted globally through mobile money platforms last year.

Mobile money has become a cornerstone of Africa’s economy, contributing $190 billion to Sub-Saharan Africa’s GDP—a $40 billion increase from the previous year. In countries like Kenya, Uganda, and Tanzania, mobile money contributes between 5% and 8% of GDP, a level of integration unmatched globally.

East Africa continues to lead the way, with Kenya boasting a mobile money penetration rate of 95% among adults. Ethiopia is emerging as a key player following market liberalization in 2021. Safaricom’s M-Pesa Ethiopia reached 4.5 million customers by December 2023, while Telebirr onboarded 32 million users through government partnerships.

West Africa is also gaining ground. Nigeria saw a 20% year-on-year growth in mobile money transactions despite initial regulatory hurdles. Ghana’s interoperability project processed over $50 billion in transactions in 2023, while Senegal achieved 90% market penetration through Wave’s disruptive model.

Africa’s agent network has doubled since 2021, with 755 registered agents per 100,000 adults ensuring access to digital financial services even in rural areas. Ecosystem transactions—such as merchant payments and bill settlements—are growing faster than person-to-person transfers. Africans paid over $100 billion to merchants via mobile money last year, a 21% increase from 2023.

Emerging innovations include cross-border transactions like Mozambique’s mKesh partnership with Tanzania and expanded credit offerings from mobile money providers. Micro-loans and overdraft products are expected to drive further growth across the continent.

Despite its success, Africa faces challenges such as regulatory hurdles and gender inclusion disparities. However, progress is being made; once women open mobile money accounts, their usage rates nearly match those of men.

Experts emphasize the need for policy reforms to unlock further growth. “Innovation needs regulatory sandboxes,” said Reenu Verma of Vodacom M-Pesa during the report’s webinar launch. Governments like Togo have already lowered taxes on mobile money transfers to encourage adoption.

Ethiopia’s transport and logistics sector is taking significant steps toward modernization and global competitiveness through a new wave of collaboration with the country’s leading universities. A major cooperation forum held in Addis Ababa brought together key government agencies, industry stakeholders, and academic leaders to accelerate sector growth and ensure that graduates are equipped with the practical skills needed in a rapidly changing logistics landscape.

The forum, attended by senior officials from the Maritime Transport Authority, Ethiopian Maritime Transport and Logistics Service Organization, and representatives from Addis Ababa, Jimma, Bahir Dar, Dire Dawa, Salale, Arsi, and Debre Berhan universities, underscored the critical role of university-industry partnerships. The Ethiopia Freight Forwarders and Shipping Agents Associations (EFFSAA) and other sector stakeholders also participated, reflecting a broad commitment to collaborative sector development.

State Minister for Transport and Logistics, Dhenge Boru, emphasized the government’s dedication to enhancing the competitiveness of Ethiopia’s logistics sector through strategic policy development. He highlighted that closer collaboration with EFFSAA and academic institutions is essential for building lasting university-industry ties, which are crucial for keeping logistics and supply chain management programs relevant and competitive.

“This partnership will provide university students with hands-on logistics experience beyond theoretical knowledge, and will be decisive in producing highly skilled professionals who are ready for both domestic and international markets,” Dhenge said.

During the forum, universities presented their ongoing initiatives to strengthen cooperation with industry. Following extensive consultations, a memorandum of understanding (MoU) was signed between the Ministry of Transport and Logistics, participating universities, and EFFSAA. The agreement outlines joint action on seven key activities, including student internship programs, curriculum development and revision, research collaboration, guest lectureships, FIATA diploma training, and measures to enhance graduate employment opportunities.

The partnership is expected to soon expand to include additional universities such as Hawassa, Arba Minch, Mekele, and Wollo, further broadening the impact of this cooperation on the country’s logistics capacity.

This move comes as Ethiopia intensifies efforts to address its trade imbalance and boost export competitiveness by investing in logistics infrastructure and streamlining sector operations. The government’s comprehensive strategy includes expanding rail and road networks, improving customs procedures, and fostering public-private partnerships to reduce costs and improve service delivery.

Meanwhile, Ethiopia’s growing prominence in the African logistics landscape was highlighted by Dawit Wubshet, President of EFFSAA, who announced in a video message from the African Logistics Associations Summit in Istanbul that Addis Ababa has been selected as the main seat of the association. With 35 African countries participating, Ethiopia also secured a board seat and will host the International Federation of Freight Forwarders Associations (FIATA) General Assembly in Addis Ababa in 2027.

These developments signal Ethiopia’s commitment to transforming its logistics sector into a dynamic driver of economic growth. By integrating academic expertise with industry needs, and by positioning Addis Ababa as a regional logistics hub, Ethiopia aims to enhance its global competitiveness and ensure that its workforce is prepared for the demands of a modern, interconnected economy.

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.