In the southern region of Ethiopia, the Kore Zone has been embroiled in conflict for the past eight years, primarily over territorial claims. This prolonged strife has not only displaced thousands of local residents but has also led to significant economic weakening within the community. As families grapple with the loss of their homes, livelihoods, and access to essential resources, the impact of these border disputes is felt deeply across all aspects of life.

A History of Conflict

The Kore Zone, located approximately 400 kilometers from Addis Ababa, has a complex history marked by territorial disputes that date back decades. Prior to the establishment of the Southern Ethiopia region, this area was known as the Amaro Special District. The current borders of Kore Zone are adjacent to the districts of Guji Galana and Suro Birguda in the West Guji Zone of Oromia Region.

Since 2016, escalating tensions have resulted in violence and displacement, with armed groups allegedly crossing into the zone from neighboring areas. The ongoing conflict has created a humanitarian crisis, with over 40,000 residents forced to flee their homes and seek refuge in inhospitable locations. Many families have lost their cattle, crops, and other assets, leaving them vulnerable and desperate for assistance.

The Displacement Experience

Displaced residents recount harrowing stories of loss and hardship. Damench Demse, a mother from Jello Kebele, shared her painful experience: “We lost our son and husband due to the conflict. Now I make a living by collecting firewood, but it’s becoming increasingly difficult to earn enough for our daily needs.” Her situation is emblematic of many families who have been uprooted from their homes and stripped of their livelihoods.

The lack of access to clean water is another pressing issue faced by displaced communities. Residents report spending over 300 birr per day to secure water supplies, while livestock must travel long distances to find water sources. This scarcity exacerbates the challenges faced by families already struggling to make ends meet.

Economic Consequences

The economic ramifications of the border conflict are profound. With investment in the area nearly halted due to repeated attacks and insecurity, local businesses are suffering. The once-thriving agricultural sector has been decimated as farmers are unable to tend to their fields or raise livestock safely.

Adane Admasu, another displaced resident from Jallo kebele, explained that they have submitted requests for government assistance but have received no response. “We used to raise cattle and cultivate our land,” he said. “Now we have nothing left. The security situation is so dire that we cannot move freely or work.”

The loss of property and assets has resulted in severe economic losses for families in Kore Zone. Reports indicate that more than half a trillion birr worth of assets have been looted or destroyed due to ongoing violence. Yet, despite these staggering losses, accountability remains elusive as no one has taken responsibility for the destruction.

The Humanitarian Response

As the situation continues to deteriorate, humanitarian organizations have stepped in to provide support for affected communities. However, aid has been inconsistent and insufficient to meet the growing needs of displaced residents. Many families report that assistance has dwindled over the past two years, leaving them struggling to survive.

Adamu Ugro, a resident of Dorbade kebele, expressed frustration at the lack of communication from aid organizations: “We don’t want to be free from hunger; we just want access to our fields and a chance to live without fear.” His plea underscores the desire for peace and stability among those affected by the conflict.

Local officials are aware of the urgent need for intervention. Adamo Aredo, team leader of the Kore Zone Agricultural Directive for Disaster Risk Management, stated that efforts are underway to support displaced individuals and revitalize the agricultural sector. “We are committed to helping residents rebuild their lives,” he affirmed.

The Role of Government Policies

Government policies regarding land use and border management play a crucial role in shaping the dynamics of conflict in Kore Zone. Local officials have repeatedly stated that militants from neighboring zones are responsible for ongoing attacks in Kore. Reports indicate that security conditions have worsened in recent weeks as tensions flare over territorial claims between various ethnic groups.

Tefera Bandero, Head of Peace and Security for Kore Zone, emphasized that collaborative efforts with neighboring zones are essential for restoring peace: “If we want to return to normalcy, we must work together,” he said.

However, many residents feel abandoned by authorities during this crisis. They urge government officials to prioritize dialogue and reconciliation efforts rather than punitive measures against those involved in violence.

A Path Forward

As Ethiopia grapples with these complex issues surrounding border disputes and economic decline, it is essential for all stakeholders—government officials, humanitarian organizations, and community leaders—to work collaboratively toward sustainable solutions.

Addressing underlying grievances related to territorial claims is crucial for achieving lasting peace in Kore Zone. Engaging local communities in dialogue can foster understanding among different ethnic groups and help rebuild trust.

Moreover, increasing investment in infrastructure development and economic recovery initiatives will be vital for rebuilding lives shattered by conflict. Ensuring access to education and healthcare services will also be essential for supporting long-term stability in affected areas.

The ongoing border conflicts in Kore Zone serve as a stark reminder of how territorial disputes can devastate communities economically and socially. As families continue to suffer the consequences of violence and instability, it is imperative that all stakeholders come together to find sustainable solutions.

By prioritizing peacebuilding efforts and investing in economic recovery initiatives, Ethiopia can pave the way for a brighter future—one where communities can thrive without fear and where residents can reclaim their livelihoods amidst the beauty of their homeland. The resilience demonstrated by the people of Kore Zone is commendable; with proper support and intervention, they can rebuild their lives and restore hope for generations to come.

As the festive season approaches, Ethiopia’s Christmas market, known locally as “Gena,” transforms into a vibrant hub of economic activity. However, this year, the market is facing significant challenges due to the government’s tax policies, which have profoundly influenced both sellers and consumers. The interplay between taxation, inflation, and consumer behavior has created a complex environment for holiday shopping, forcing many to rethink their spending habits during this cherished time.

The Christmas Market: A Cultural and Economic Highlight

Ethiopia’s Christmas celebrations are marked by lively markets filled with colorful fabrics, intricately embroidered baskets, and shiny jewelry. These markets are not just places to shop; they are cultural melting pots where farmers bring fresh produce, artisans showcase their handicrafts, and families gather to buy gifts and holiday treats. The atmosphere is electric, with the sounds of bargaining and the aromas of traditional foods filling the air.

However, this year’s festive spirit is dampened by rising costs. High inflation has eroded purchasing power, making it increasingly difficult for consumers to afford essential goods and services. Yared Bezabih, a father shopping for clothes for his children at a local bazaar, expressed his disappointment: “I expected prices to be high during the holidays, but I didn’t anticipate such a drastic increase this year.”

The Burden of Taxation

The government’s tax policies have played a crucial role in shaping the dynamics of the Christmas market. Sales taxes, import duties, and licensing fees have significantly increased the costs faced by sellers. Daniel Habtamu, owner of DH Children’s Clothing Store, explained how these taxes impact pricing “The tax imposed on any clothing starts at the checkpoints when it enters Addis Ababa. By the time we put it on the market for sale, we’ve already spent more than 300 birr on a single piece of clothing due to taxes alone. To maintain our profit margins, we have no choice but to raise prices.”

This increase in costs not only affects sellers but also discourages consumer spending. As prices rise, many shoppers are forced to prioritize essential items over holiday purchases like gifts and decorations. Gobena Sultan, another business owner in the sector, noted that high prices for electronics and holiday decorations have led consumers to cut back on their spending.

The Ripple Effects of Inflation

The rising cost of living in Ethiopia has compounded the challenges faced by both consumers and businesses. With inflation rates soaring, households are tightening their budgets and making difficult choices about where to allocate their limited resources. Many retailers report lower-than-expected sales during what is typically a lucrative holiday season.

“Many small businesses rely heavily on revenue generated during the holidays,” Gobena said. “With consumers cutting back on spending due to high prices, it’s hurting our bottom line.”

The government’s tax policy has exacerbated these issues by limiting disposable income for families. As consumers prioritize essential goods over discretionary spending, local businesses that depend on holiday sales face an uphill battle.

Supply Chain Dynamics

While some prices have increased dramatically—such as goats rising from 12,000 birr to 20,000 birr—other items have seen fluctuations that reflect supply chain dynamics rather than solely tax impacts. For instance, the price of sheep has decreased significantly compared to last New Year festivity period due to improved supply from regions like Wolaita and Arba Minch.

Buzenesh Kidane, a businesswoman in the Akaki market area, explained that while sheep prices have stabilized following previous unrest that limited supply, other goods like butter have seen price hikes up to 300 birr per kilogram.

Despite these challenges, there are signs of resilience within the market. Shoppers have noted that while some prices remain high due to inflation and tax burdens, others have become more affordable as supply chains stabilize.

The Role of Government Policies

Government trade policies play a critical role in shaping supply dynamics within Christmas markets. High tariffs on imported goods can lead to increased prices for consumers while simultaneously harming local manufacturers who struggle to compete with foreign products.

In recent years, Ethiopia has sought to integrate its economy into global markets through macroeconomic reforms aimed at reducing trade barriers. However, these policies must balance encouraging local production with ensuring affordable access for consumers during critical periods like the holiday season.

A Call for Change

As experts weigh in on the impact of taxation on consumer behavior during the holiday season, there is a growing consensus that government policies should be reevaluated. Many believe that tax increases should consider their effects on seasonal markets and strive to stimulate consumer spending rather than stifle it.

Consumers and business owners alike are calling for more supportive measures from policymakers during critical times like Gena. They argue that fostering an environment conducive to economic activity is essential for both short-term gains during holidays and long-term growth.

Navigating Challenges Together

Ethiopia’s Christmas market is a testament to resilience amid economic challenges posed by high inflation and burdensome tax policies. As families prepare for the holiday season against a backdrop of rising costs and reduced purchasing power, it is clear that both consumers and businesses are feeling the strain.

While government policies play a significant role in shaping market dynamics, there is hope that collaborative efforts between government officials and business leaders can lead to more favorable conditions for all stakeholders involved. By prioritizing support for local entrepreneurs and fostering an environment conducive to consumer spending during festive periods like Gena, Ethiopia can ensure that its vibrant markets continue to thrive even in challenging times.

Ethiopia is on the verge of becoming a member of the World Trade Organization (WTO), but officials are warning that illicit trade practices could pose significant challenges to this goal. As the country prepares for its fifth round of international trade negotiations in Geneva, scheduled to take place in less than two months, the government is keenly aware of the hurdles it faces in combating smuggling and ensuring compliance with global trade standards.

Ethiopia’s bid to join the WTO has been stalled for two decades, primarily due to delays in implementing necessary economic and policy reforms. The Minister of Trade and Regional Integration, Kassahun Gofe, emphasized that the upcoming negotiations represent a critical opportunity for Ethiopia to advance its membership application. “It is time for Ethiopia to join the World Trade Organization,” he stated, highlighting the nation’s readiness to engage with global trade partners.

During previous negotiations in 2020, approximately 181 questions were raised by member states regarding various issues, including foreign exchange regulations, industrial parks, and investment policies. Addressing these concerns will be crucial as Ethiopia seeks to demonstrate its commitment to adhering to WTO standards.

Despite the optimistic outlook for WTO membership, Kassahun cautioned that the prevalence of smuggling remains a serious obstacle. He warned that if smugglers are not apprehended and held accountable, they could undermine Ethiopia’s efforts to establish a healthy trade system. “If we cannot punish individuals engaged in smuggling, it will be a challenge to our membership,” he noted.

The impact of smuggling on Ethiopia’s economy is profound. Illicit trade not only distorts market dynamics but also deprives the government of much-needed revenue. In the fiscal year 2023/24 alone, authorities seized contraband and illicit money worth over 15.5 billion birr. This staggering figure underscores the urgency of addressing illegal trade practices as Ethiopia navigates its path toward WTO membership.

Kassahun called on the international community to collaborate in combating illegal trade, emphasizing that while there are legitimate traders contributing to national development, those engaged in illicit practices are harming the economy. His remarks came during the opening of the 3rd National Conference on Illegal Trade organized by the Ethiopian Chamber of Commerce and Sectoral Associations in Addis Ababa.

Kenenisa Lemi, Secretary-General of the Ethiopian Chamber of Commerce and Sectoral Associations, echoed this sentiment, stating that consultations involving stakeholders are being prepared to mitigate the impact of illicit trade on Ethiopia’s business environment.

Ethiopia’s aspirations for WTO membership align with broader efforts to implement economic reforms that can enhance macroeconomic stability. The government is committed to aligning its policies with global trade standards while fostering an environment conducive to legitimate business activities.

The ongoing reforms aim not only to facilitate Ethiopia’s entry into the WTO but also to promote sustainable economic growth that benefits all citizens. By addressing issues related to smuggling and illegal trade, Ethiopia can create a more equitable marketplace where businesses can thrive without fear of unfair competition.

Utopia Technology has unveiled Ethiopia’s first integrated electric car financing system, the “Utopia Green Fund,” alongside a dedicated app designed to facilitate access to electric vehicles. This groundbreaking initiative aims to promote sustainable transportation and make electric cars more accessible to the Ethiopian public.

The Utopia Green Fund combines interest-free lease payments with savings options, allowing customers to finance their electric vehicle purchases in a way that is both affordable and practical. The app is designed with the goal of enabling 10,000 customers to own electric cars while also planning the establishment of electric vehicle battery charging stations across the country.

Adonic Werku, Founder and Managing Director of Utopia Technology, emphasized that the financing system is structured to accommodate all sectors of society. “We are facilitating interest-free car leases for up to 10 years, making it easier for Ethiopians to transition to electric vehicles,” he stated.

To enhance the payment process, Utopia Technology has partnered with the Commercial Bank of Ethiopia and Tele Birr, enabling seamless digital transactions for customers. This collaboration is expected to streamline payments and improve the overall customer experience when purchasing electric vehicles.

In addition to financing, Utopia Technology is also launching “Utopia Automotive,” a service focused on the assembly, supply, and repair of electric vehicles powered by renewable energy. Furthermore, plans are underway for “Utopia Electric Car Charging,” which aims to construct charging stations utilizing renewable energy technology.

The introduction of this electric car financing system reflects Ethiopia’s commitment to advancing sustainable transportation solutions. As the global demand for electric vehicles continues to rise, Ethiopia is positioning itself as a player in the green mobility sector.

The initiative comes at a crucial time as countries around the world are increasingly recognizing the importance of reducing carbon emissions and promoting environmentally friendly practices. By investing in electric vehicle infrastructure and financing options, Ethiopia aims to create a more sustainable future for its citizens.

Utopia Technology plans to launch “Utopia Electric Car Taxi,” further expanding its impact on the transportation landscape in Ethiopia. This initiative will not only provide residents with convenient transportation options but also contribute to job creation within the green economy.

As Ethiopia embraces this transition toward electric mobility, it is essential for all stakeholders—government officials, businesses, and consumers—to work together to ensure a successful implementation of these initiatives. By fostering an environment conducive to innovation and sustainability, Ethiopia can pave the way for a cleaner and more efficient transportation system.