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PMO takes direct control of Strategic Commodity Management following fertilizer scandal

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In the aftermath of the fertilizer scandal, the Prime Minister’s Office has taken decisive control of strategic commodity management, focusing on essential agricultural inputs to ensure prompt and effective responses. A specialized high-level committee has been quickly established to investigate the issue thoroughly and transparently.

With this strengthened leadership, the Prime Minister’s Office now leads the operations of the Ethiopian Agricultural Businesses Corporation (EABC), the country’s primary supplier of agricultural inputs. This initiative aims to foster innovation, accountability, and efficiency to enhance food security and support farmer prosperity.

In response to the influx of substandard fertilizer imported from China, top executives at EABC and Ethiopian Shipping and Logistics (ESL) have been replaced, along with changes in the chairpersons of the boards of both state-owned enterprises.

Under the new structure, Alemtsehay Paulos, Head of the Prime Minister’s Office and Minister of Cabinet Affairs, has been appointed Chairperson of the EABC Board of Directors. This represents a significant shift in the sector, as EABC is responsible for supplying agricultural inputs—especially fertilizer—to Ethiopian farmers.

Historically, the EABC Board, which oversees fertilizer imports, was chaired by the Ministry of Agriculture and included key stakeholders such as the Ministry of Finance (MoF), the National Bank of Ethiopia, the Commercial Bank of Ethiopia (CBE), and the Ministry of Transport and Logistics. However, with recent fertilizer shipments arriving in Djibouti, the Prime Minister has appointed his cabinet head to directly chair the board.

“Alemtsehay was a member of the previous board, but her current role indicates the PM’s Office is taking serious direct control over this politically sensitive commodity,” a source familiar with the situation told Capital. The source also noted that management changes at EABC followed her appointment.

For instance, Yeshimebet Negash, the former head of the Ethiopian Industrial Inputs Development Enterprise, has been named the new CEO. Woldeab Demissie, a procurement specialist and former board member recognized as a leader at the Federal Public Procurement and Property Authority, has been appointed Deputy CEO to oversee the agricultural inputs production and supply sector.

Reports indicate that about seven senior leaders, including long-serving CEO Kifle Woldemariam, have been in custody for more than two weeks.

The restructured EABC Board now includes the newly appointed Minister of Agriculture, Addisu Arega, as Vice Chairman; Takele Uma, CEO of Ethio-Djibouti Railways SC; and Mandefro Nigussie, Director General of the Ethiopian Agricultural Transformation Institute, as board members. They join the Governor of the National Bank, the President of CBE, and MoF State Minister Semereta Sewasew. Notably, Alemu Sime, Minister of Transport and Logistics, has been removed from the new board. Sources indicate that Alemtsehay has established an internal committee at EABC to investigate the enterprise’s operations.

At ESL, a comprehensive board overhaul is expected. On Tuesday, October 14, Berhanu Tsegaye (Amb.), the State Minister of Foreign Affairs and former head of Ethiopia’s diplomatic mission in Djibouti, was appointed as the ESL Board Chairman. He takes over from Ahmed Shide, the Minister of Finance, who has held various ministerial and state ministerial positions for nearly two decades.

While ESL does not have direct responsibility for cargo quality, allegations regarding handling have surfaced. Djiboutian sources downplay ESL’s technical role, and Ethiopian officials have refrained from commenting due to the ongoing investigation.

At ESL, Wondwossen Kassa (Capt.), the Deputy CEO for Shipping and a shipping expert, has been detained for nearly three weeks. On Tuesday, Abdulber Shemsu, the former Director General of the Ethiopian Maritime Authority, was appointed CEO of ESL, succeeding Beriso Amelo.

Ethiopia imports more than $1 billion worth of fertilizer each year. Experts, speaking anonymously, have reported that laboratory tests have shown low quality in these products. However, logistics experts contend that shipments would not proceed without quality approval from the relevant government authorities.

Some consignments, including a vessel that arrived in Djibouti from China on Tuesday, have been forced to return with their cargo. The enterprises involved have not verified the details, and Capital’s attempts to gather more information have been unsuccessful amid the investigation.

In a related development, former Communications Affairs Minister Legesse Tulu was appointed Ethiopia’s Ambassador to Djibouti—Ethiopia’s crucial logistics hub for the landlocked nation—on Tuesday, assuming the role the following day. This position had been vacant since Berhanu’s recall to Addis Ababa.

Sources confirm that the detained individuals have appeared in court twice, including this week.

From a Cup of Tea to a Path of Development: China’s Approach to Poverty Alleviation

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By Jiang Feng

China is world-renowned for its tea. Nowadays, the top choice of gift that my colleagues at the Ministry of Foreign Affairs and I present to foreign friends is Ancient Tree Tea from Malipo County, Yunnan Province. Though not widely known, this tea carries a compelling story of China’s fight against poverty with its unique aroma. October 17 marks the International Day for the Eradication of Poverty and China’s National Poverty Alleviation Day. On this special occasion, let us share a cup of fragrant tea and reflect on the achievements and lessons learned from China’s journey out of poverty.

From the launch of Reform and Opening Up in 1978 to the year of 2021, China lifted more than 800 million people out of poverty in just four decades — contributing over 70% of the global poverty reduction during that time, and achieving the largest-scale poverty alleviation effort in human history. After declaring the complete eradication of absolute poverty in 2021, China set a five-year transitional period. As this period draws to a close, we can confidently announce that China has successfully prevented any large-scale return to poverty and eliminated the risk of people falling back into hardship.

The scale, speed, and resilience of China’s poverty reduction have astonished the world, creating a historic miracle in global development. Behind this success is a proven and effective “China approach” to poverty alleviation:

Strong Leadership

Poverty alleviation was led under the unified leadership of the Communist Party of China, ensuring long-term policy continuity. From central to local levels, roles were clearly defined and responsibilities assigned to specific individuals, maximizing leadership, organizational capacity, and implementation strength. As UN Secretary-General António Guterres noted, China’s experience shows the importance of political commitment at all levels of government and policy stability to improve the conditions of the poorest and most vulnerable.

Addressing People’s Urgent Needs

China’s efforts have always been guided by a people-centered development philosophy. It fully achieved the goals of “Two Assurances and Three Guarantees” — ensuring that the poor are not worried about food and clothing, and have guaranteed access to compulsory education, basic medical services, and safe housing. Priority was placed on solving the most pressing and immediate issues of concern to poor communities, significantly enhancing their sense of gain and happiness.

Targeted Poverty Alleviation Strategy

China followed the principles of identifying the truly poor, providing real assistance, and achieving genuine results. This meant precise management of poverty-stricken individuals, targeted allocation of resources, and tailored support measures. Development was seen as the ultimate solution to poverty, shifting the focus from providing temporary relief (“blood transfusion”) to empowering self-sustaining growth (“blood production”).

Mobilizing the Whole of Society

China promoted partnerships between developed and underdeveloped regions, encouraging the flow of talent, capital, and technology to impoverished areas. Central government departments and state-owned enterprises were tasked with designated support for specific counties. It was through this mechanism that my colleagues and I came to know the Ancient Tree Tea of Malipo. Since 1992, the Ministry of Foreign Affairs has provided targeted assistance to Jinping and Malipo, two border counties in Yunnan Province, helping to establish industries such as ancient tea trees, ginseng fruit, passionfruit, and traditional Chinese medicine — lifting the local economy and residents out of poverty.

By eradicating absolute poverty across a nation that accounts for nearly one-fifth of the world’s population, China met the UN 2030 Sustainable Development Goal on poverty reduction ten years ahead of schedule. This is a monumental contribution to global poverty alleviation and human development.

It sends a powerful and clear message to partners across the Global South: poverty is not destiny, while it can be defeated. As President Xi Jinping put it: “If China can succeed, so can other developing countries.” China has provided a reference model — one that is replicable and adaptable — for the world’s poverty reduction efforts, while also demonstrating the diversity of development paths.

China supports African countries in identifying poverty reduction strategies suited to their own conditions. For years, China has actively assisted African countries through agricultural aid, educational training, and healthcare cooperation, helping to build self-sustaining development capacities. From hybrid rice and agricultural machinery to solar projects and clean water infrastructure, China has provided practical and sustainable solutions across the continent.

Looking ahead, China will continue to share its experiences, deepen cooperation with African countries, and jointly explore more signature industries — like Ancient Tree Tea — to further advance the cause of global poverty alleviation.

Ambassador JIANG Feng is the Ambassador of China to the African Union

Third Round of Integrated Polio Vaccination Targets Over 8.5 Million Ethiopian Children

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Ethiopia launched the third round of its integrated polio vaccination campaign on October 10, 2025, aiming to immunize more than 8.5 million children across 22 zones in seven regions. This large-scale effort employs both the novel oral polio vaccine type 2 (nOPV2) and the bivalent oral polio vaccine (bOPV) to bolster immunity among children and combat the persistent threat of circulating vaccine-derived poliovirus (cVDPV2).

The campaign, which follows a similar integrated effort in February 2025, reflects a determined push toward eradicating polio in the Horn of Africa. According to the Ethiopian Ministry of Health, the initiative is synchronised with broader regional strategies involving neighboring countries, recognizing the cross-border nature of poliovirus transmission and the need for coordinated response across the region. Earlier in 2025, more than 600,000 children were vaccinated, and nationwide coverage in previous rounds has often surpassed official targets.

The expanded approach aligns with the updated strategy of the WHO African Region, which now recommends three to five rounds of immunization in countries confronting polio outbreaks. The campaign integrates vital child health services to maximize impact and reach, with a focus on reaching zero-dose and under-vaccinated children in high-risk communities.

Health officials emphasize the campaign’s role in driving Ethiopia and the region closer to a polio-free future. Ongoing support from partners such as the World Health Organization, UNICEF, and Rotary International has been instrumental. Real-time monitoring and independent quality assurance continue to support field teams, ensuring high coverage and rapid response in hard-to-reach areas.

By reinforcing immunity among millions of children through integrated rounds of vaccination, Ethiopia is taking critical steps to eliminate polio and safeguard the future health of its youngest citizens.

Ethiopia ’s debt restructuring talks with bondholders end without agreement

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Ethiopia’s efforts to restructure its $1 billion 6.625% bond due in 2024 have stalled, as restricted negotiations with a group of private bondholders concluded without a final deal.

The Ministry of Finance announced the collapse of talks, citing disagreements over key terms of the debt restructuring financing as the primary cause. Negotiations, conducted between September 25 and October 13, 2025, failed to produce a debt management plan acceptable to both parties.

Both Ethiopia and the Ad Hoc Committee of bondholders proposed similar terms for the new bond. These included a withdrawal rate of $850 million—reflecting a 15% principal haircut excluding past owed interest—a maturity date set for July 15, 2029, an interest rate of 6.125%, and full payment of three missed coupons totaling $99.375 million upon deal completion.

However, significant differences remained around the Value Recovery Instrument (VRI) and Downside Adjustment provisions. Both proposals tied the VRI to Ethiopia’s annual merchandise exports but differed on operational details and expected values. The Ad Hoc Committee suggested a maximum “percentage fee” of 4.75% and a VRI notional value up to $400 million for export gains exceeding IMF forecasts from 2024/25 to 2027/28. In contrast, Ethiopia’s proposal limited the fee to 1.5% over a longer period (2026/27 to 2035/36), capped annual payments at $30 million, and set the VRI value at $180 million.

Regarding downside adjustments, Ethiopia proposed a single-year adjustment (2027/28) if exports fell below 95% or 85% of the IMF’s forecast, while the bondholders’ committee favored adjustment across the entire IMF program period (2024/25 to 2027/28), based on total commodity exports.

The Ministry acknowledged that future restructuring would require agreement on non-financial contract terms raised by the Ad Hoc Committee but not formally addressed during talks.

Despite the setback, Ethiopia reaffirmed its commitment to cooperative debt management principles and pledged to continue engaging in good faith with all creditors, including the Ad Hoc Committee. The government also plans to work with the Public Creditors Committee and the IMF to explore options to close remaining gaps.

Ethiopia was advised by White & Case LLP and Lazard, while the Ad Hoc Committee was represented by Weil, Gotshal & Manges (London) LLP and Ankura Sovereign Advisors LLP.

In an official statement on October 14, 2025, the Ministry of Finance emphasized its readiness to collaborate with all lenders and the IMF, aiming to find alternative solutions and resume progress on debt restructuring.