As the global economy increasingly relies on maritime transport, Africa finds itself at a critical juncture. The Review of Maritime Transport 2024, published by the United Nations Conference on Trade and Development (UNCTAD), highlights both the challenges and opportunities that shape the continent’s maritime sector.

Maritime trade volumes in Africa have shown resilience, with a reported increase in seaborne trade driven by demand for bulk commodities such as oil, minerals, and agricultural products. The continent’s strategic position along major shipping routes, including the Suez Canal, underscores its importance in global supply chains. However, the ongoing geopolitical tensions and climate-related disruptions pose significant risks to this growth.

In particular, the Red Sea and Suez Canal have experienced increased disruptions, leading to longer shipping routes that escalate operational costs. These challenges have direct implications for African economies, particularly small island developing states and least developed countries, which are most affected by rising freight rates.

The report emphasizes the crucial role of maritime chokepoints in global trade. For Africa, the Suez Canal is a vital artery that connects the continent to Europe and beyond. Recent disruptions in this region have forced shipping companies to reroute vessels around the Cape of Good Hope, significantly increasing transit times and costs. This not only affects the competitiveness of African exports but also leads to higher prices for imported goods, exacerbating inflation.

Recognizing the need for improvement, many African nations are investing in port infrastructure and logistics capabilities. Initiatives aimed at enhancing connectivity between ports and hinterland areas are essential for facilitating maritime trade. Improved efficiency in ports can lead to faster turnaround times for vessels, ultimately benefiting trade flows.

Additionally, the transition to cleaner energy sources in shipping is gaining momentum. As the continent faces the dual challenge of economic growth and environmental sustainability, investments in green technologies and practices within the maritime sector are becoming increasingly important.

Regional cooperation is also vital for enhancing maritime transport in Africa. Collaborative frameworks such as the African Union’s Agenda 2063 aim to strengthen intra-African trade and improve transport networks. By fostering partnerships between countries, the continent can better navigate the complexities of global shipping and enhance its economic resilience.

The future of maritime transport in Africa is filled with potential, but it requires a concerted effort to address the existing challenges. As highlighted in the UNCTAD report, the focus must be on building resilient supply chains, investing in sustainable practices, and enhancing international cooperation.

By leveraging its strategic maritime position and investing in infrastructure, Africa can not only improve its trade performance but also contribute significantly to global maritime transport dynamics. As the continent navigates these waters, the path ahead will be shaped by both its challenges and the opportunities that lie within.

The central bank has raised the Treasury bill (Tbill) yield to align with the newly implemented policy rate. This move aims to ensure market functionality and enhance participation from the banking sector in auctions, following recommendations from international partners.

The government relaunched the Treasury bill auction in December 2019, adopting a market-oriented scheme that encourages involvement from entities beyond pension funds in the biweekly market.

Although financing costs for the government have significantly increased, Tbill auctions were successfully introduced to replace the existing mandatory NBE Bills with a market-based system for domestic borrowing.

However, the government has faced pressure from foreign partners to increase yields, as the weighted average yields are currently negative in real terms.

According to a recent review by the International Monetary Fund (IMF), the transmission of monetary policy to Treasury bill rates has been limited. Weighted average issuance yields have remained at or below 10–11 percent, despite authorities’ commitment to adjusting Tbill rates to market-clearing interest rates.

The IMF report indicates that, against a projected issuance of 137.5 billion birr, only 64.1 billion birr in Treasury bills were issued between July and September 2024, revealing “little involvement from the banking industry.”

The report further notes that additional measures are necessary to enhance market functioning, improve price discovery, and address ongoing undersubscription in Tbill auctions, as discussed in monetary policy meetings with authorities in September.

“While Treasury bill rates are now theoretically allowed to adjust freely to market-clearing interest rates, continued demand from pension funds at deeply negative real interest rates, the Central Bank of Ethiopia’s (CBE) practice of including Treasury bills in reserve requirement calculations, and the historical precedent of the NBE rejecting auction bids above 10 percent have limited participation from the banking sector,” the IMF stated in its reports.

Authorities have acknowledged the need for improvements in the auction process and have agreed to accept rates up to the policy rate introduced by the National Bank of Ethiopia at the beginning of the current fiscal year.

The IMF has emphasized that authorities recognize the necessity of increased banking sector participation and are committed to ensuring that market participants understand the new rules governing the Treasury bill market.

The average yield has improved in the last two notable Tbill auctions compared to previous ones. The most recent auction, held on November 13, yielded an average return of over 14.5%. The lowest yield was 12.8 percent for a six-month maturity, while the maximum allowed by the NBE was 15.6 percent for a 28-day maturity, exceeding the policy rate of 15 percent.

Between July and September 2024, two pension funds—the Public Employees Social Security Administration and the Private Organization Employees’ Social Security Administration—along with the CBE, acquired over 80% of Tbill issues; however, several smaller banks have begun to expand their holdings.

The IMF stated in its evaluation report, published about two weeks ago, that “a rise in Treasury bill rates to yields at least in line with the monetary policy rate is needed to ensure the continued development of the transmission mechanism and government debt markets.”

In contrast to directive advances, which are a primary financing scheme driving inflation, Tbill auctions serve as a tool to regulate money flow in the market and facilitate government funding.

Ethiopia is grappling with significant challenges related to workplace sexual harassment, highlighting the urgent need for comprehensive legal frameworks to protect workers, particularly women, from gender-based violence in the labor market. A recent report “Mapping Legal Protections Against Workplace Sexual harassment in Africa” by the World Bank underscores the pervasive nature of sexual harassment across various sectors, including employment, education, and public spaces, emphasizing that many employees remain vulnerable due to inadequate legal protections.

The report reveals that while Ethiopia has made strides in addressing gender equality, gaps remain in the legal prohibitions against sexual harassment in the workplace. This issue is compounded by a lack of enforcement mechanisms and societal attitudes that often tolerate such behavior. As of 2024, nearly half of African countries have some form of law prohibiting sexual harassment; however, Ethiopia’s legal framework still requires significant improvement to effectively address this pervasive issue.

Experts note that the absence of robust laws not only diminishes women’s economic opportunities but also perpetuates a culture of impunity for perpetrators. The International Labour Organization (ILO) Convention 190 on Violence and Harassment in the World of Work offers a roadmap for reforming national laws and policies. However, Ethiopia has yet to ratify this critical treaty, which aims to provide comprehensive protections against workplace harassment.

In Ethiopia’s hospitality sector, for example, women have reported facing numerous challenges, including revealing dress codes that contribute to their objectification and a lack of financial security that leaves them vulnerable to exploitation. These conditions highlight the intersection of poverty and workplace harassment, where marginalized individuals often endure harassment as a means of survival.

The Ethiopian government has been urged to take decisive action by ratifying international conventions and implementing effective legislation that not only prohibits sexual harassment but also provides clear pathways for victims to seek justice. Advocacy groups emphasize that creating a safe working environment is essential for fostering economic growth and ensuring gender equality.

As Ethiopia continues its journey towards development and modernization, addressing workplace sexual harassment must become a priority. By strengthening legal frameworks and promoting a culture of respect and equality in the workplace, Ethiopia can take significant steps toward protecting its workforce and enhancing women’s participation in the economy.

Despite the ambitious goal of achieving the 2030 Sustainable Development Goals (SDGs), Ethiopia faces a significant funding shortfall that jeopardizes its progress, particularly in the area of water, sanitation, and hygiene (WASH). A recent report indicates that 43% of the necessary funding for SDG 6, which aims to ensure availability and sustainable management of water and sanitation for all, remains unallocated.

The One Wash National Program, which requires a total of $6.8 billion to implement effectively, is currently lacking $2.9 billion in funding. This financial gap has serious implications for the country’s ability to provide adequate water facilities, with many existing facilities deteriorating due to insufficient resources. According to surveys, only 57% of respondents reported being able to access necessary water services, highlighting the urgent need for increased investment.

Research has identified several critical challenges hindering the implementation of effective WASH policies, including low capacity for policy execution and a lack of financing for new facility developments and sanitation initiatives. In response to these issues, Aqua for All has stepped in to provide financial assistance aimed at bridging the funding gap.

A representative from Aqua for All in Ethiopia stated that the organization is committed to “narrowing the financial gap in WASH.” The initiative involves collaboration with five microfinance institutions and has allocated a total budget of 2 million euros for the program. Of this amount, 25,000 euros have been distributed as grants to support local organizations.

Aqua for All is a non-profit organization that has been working across Africa and Asia for two decades to promote innovative and sustainable water and sanitation solutions. The current program aims to enhance the capacity of approximately 101 indigenous civil society organizations and networks involved in WASH efforts across various regions in Ethiopia, including Amhara, Afar, Oromia, and Benishangul-Gumz.

As Ethiopia strives to meet its SDG commitments by 2030, addressing the funding shortfall in WASH services is critical. Without adequate financial resources and effective implementation strategies, the country risks falling short of its development goals, ultimately impacting millions of citizens who rely on these essential services.

The collaboration between Aqua for All and local organizations represents a proactive step toward overcoming these challenges and ensuring that all Ethiopians have access to safe water and sanitation facilities. As discussions around sustainable development continue, it is clear that concerted efforts are needed from both national and international stakeholders to secure the necessary funding and resources.