More than 50% of Ethiopia’s adult population remains excluded from formal financial services, posing a significant challenge to the country’s economic development and social inclusion. Millions, particularly rural residents, have no access to banking or credit facilities, deepening financial scarcity and limiting opportunities for growth and employment.

Micro, small, and medium enterprises (MSMEs) face even greater obstacles. According to experts, only 1.9% of small enterprises and 6% of microenterprises currently have access to credit services. These stark figures underscore how limited financial inclusion contributes to high unemployment, insufficient job creation, and unsustainable economic progress.

In response, Ethiopian fintech company Kifiya, in partnership with the MasterCard Foundation, recently hosted its third knowledge-sharing event to address these barriers and explore innovative solutions. At the event, Kifiya unveiled a new collateral-free lending model powered by artificial intelligence (AI), which has enabled banks to extend over 35 billion birr in loans to more than 467,700 SMEs across the country.

A key initiative highlighted was the SAFEE programme, co-led by Kifiya and the MasterCard Foundation, which has successfully provided loan services to 358,977 MSMEs and 355,027 women entrepreneurs. This effort has supported the creation and sustenance of over one million jobs, illustrating the transformative potential of inclusive finance.

Despite these achievements, experts acknowledge that much remains to be done. The scale of financial exclusion means that current successes fall short of delivering the broad economic impact needed to uplift more than half of Ethiopia’s population. The forum attracted over 300 stakeholders, including government officials, banking representatives, fintech innovators, and development experts, fostering collaborative discussions on leveraging AI to unlock new financial markets.

The Ethiopian Media Authority (EMA) has issued a stark warning about the increasing spread of hate speech and disinformation on social media platforms, highlighting the growing threat these pose to national cohesion and public safety. The latest report, which analyzes data from the Ethiopian calendar year January 2016 to January 2017 EC (approximately mid-2023 to mid-2024 Gregorian), reveals alarming trends in the circulation of harmful content across popular online channels.

This third comprehensive study by the EMA focuses on five major platforms: Facebook, Telegram, YouTube, X (formerly Twitter), and TikTok. By monitoring over 2,000 content items and analyzing nearly 2,000 samples, researchers examined pages belonging to individuals, politicians, religious leaders, institutions, media outlets, and influencers with more than 5,000 followers. The study is further supported by a nationwide survey of 1,700 residents, covering diverse regions of the country to understand public perceptions and impacts.

The findings reveal that text-based hate speech and disinformation constitute the majority of harmful content, accounting for 56.1% of cases. Motion pictures and videos contribute 14.7%, while a combination of video and text makes up nearly 12%. Despite a relatively lower volume, audio content also plays a role in spreading misinformation.

Among the platforms, Facebook remains the primary source for news and information for 56% of Ethiopians, followed by TikTok (30%) and Telegram (10%). YouTube accounts for a smaller share, and the population accessing information via X or Twitter remains minimal.

The report underscores the outsized role of influential individuals in the spread of harmful speech: over 55.9% of hate and false content originates from prominent figures including political and religious leaders, while media institutions contribute 26% and ordinary individuals make up 16.7%.

Content analysis indicates that hate speech predominantly targets political views (76.8%), followed by ethnicity (15.2%) and religion (5.6%). The primary targets include national institutions (31%), politicians (22.1%), and Ethiopia itself as a country (21.4%). This toxic environment exacerbates social divisions and fuels mistrust in public institutions.

Public awareness of how to combat this trend remains low. The report shows that 64% of social media users do not know how to report hate speech or misinformation when they encounter it. Moreover, a significant 84% of respondents admitted to not responding or reporting harmful content. Of those who did report, 9% said their complaints resulted in no action, pointing to inadequate enforcement by social media companies, which the report criticizes for failing to uphold legal and ethical responsibilities.

In response to these challenges, the EMA stresses the urgent need for a robust policy and legal framework to prevent the proliferation of hate speech and disinformation online. The report calls for legislation that compels social media companies to implement reporting systems accessible in Ethiopia’s local languages and mandates swift investigation and removal of content that violates the law and ethical standards.

Experts interviewed alongside the report highlight the delicate balance between safeguarding freedom of expression and curbing the destructive effects of hate speech. The Ethiopian government’s enactment of the Hate Speech and Disinformation Prevention and Suppression Proclamation in 2020 aims to address these issues but also raises concerns about potential impacts on media freedom.

EMA’s findings contribute to a growing awareness of the role social media plays not only in empowering voices but also in amplifying division and misinformation. With Ethiopia’s complex ethnic makeup and recent history of conflict, unchecked hate speech risks reigniting tensions and undermining peacebuilding efforts.

Social media’s rapid growth in Ethiopia brings tremendous opportunities for communication, education, and civic engagement, but the report’s revelations underscore the urgent need for collaboration among government bodies, civil society, media practitioners, and platform operators to ensure responsible digital spaces.

The 2024 Human Rights Report released by the U.S. Bureau of Democracy, Human Rights, and Labor Affairs reveals notable deficiencies in how Ethiopia enforces its labor laws, with particular concerns about wages, working conditions, and workers’ rights.

One major gap identified is Ethiopia’s absence of a national minimum wage. While certain public institutions have set their own wage floors, workers in critical sectors such as industrial parks frequently earn salaries below the poverty line. The Confederation of Ethiopia Trade Union (CETU) has called on the government to establish a comprehensive national minimum wage, increase civil servant pay, and uphold workers’ rights to form unions.

The report underscores that, although Ethiopian labor law stipulates a 48-hour working week with additional surcharges for overtime, the Ethiopian Human Rights Commission has reported widespread poor working environments and insufficient wages across many factories and industrial parks. These poor conditions contribute to high labor turnover rates, a problem confirmed by the International Labour Organization (ILO), which cites low pay as a primary factor.

Beyond remuneration, the report highlights significant obstacles workers face in exercising their constitutional rights to unionize and bargain collectively. Despite legal guarantees, regulations place severe restrictions on union formation for certain groups including administrative staff, teachers, healthcare workers, judges, and domestic employees. Moreover, workers dismissed due to union activities often encounter protracted legal battles, as Ethiopia’s sluggish court system delays resolution for years.

The enforcement capacity of the Ministry of Labor and Skills is also criticized. The report points to a shortage of labor inspectors and inadequate recordkeeping of violations, further hindering regulatory oversight. These challenges are exacerbated in Ethiopia’s informal sector, employing over 70% of urban workers, where labor laws are seldom applied.

Consequently, a large portion of Ethiopia’s workforce remains unaware of their labor rights and struggles to organize collectively, leaving them vulnerable to exploitation and with diminished power to advocate for improved wages and safer conditions.

The U.S. report’s findings underscore an urgent need for Ethiopia to review and strengthen its labor policies. Addressing wage inadequacies, improving workplace environments, and safeguarding workers’ fundamental rights are critical steps to ensuring fair and equitable labor practices across all sectors of the Ethiopian economy.

Ethiopia has taken a significant leap toward harnessing its abundant solar energy resources through a historic partnership with the International Solar Alliance (ISA). Announced in collaboration with the Ethiopian Ministry of Water and Energy, this partnership aims to address the country’s energy poverty and drive economic growth by expanding access to clean and affordable solar power.

A central goal of the alliance is to align ISA’s support with Ethiopia’s National Energy Plan, targeting electricity access for more than half of the population currently living without power. This initiative holds particular promise for residents of remote and semi-pastoral rural areas, where traditional grid extension is economically challenging. Solar energy is increasingly seen as the most cost-effective solution to bring electricity to these underserved communities.

Ashish Khanna, Director General of ISA, highlighted the transformative potential for farmers, whose use of solar-powered irrigation pumps could dramatically cut costs. “Solar pumps consume only a quarter of the energy compared to diesel pumps,” Khanna noted, emphasizing how this shift could significantly boost agricultural productivity and household incomes.

At the core of this ambitious vision is the planned construction of Ethiopia’s first 400-megawatt solar energy park. Modeled on successful solar park projects in India—which has driven 90% of the country’s solar power development—Ethiopia aims to attract robust private sector investment. Khanna explained that by enabling the private sector to focus on solar power generation, the government can concentrate its efforts on reforming electricity distribution, a crucial bottleneck for energy expansion.

However, ISA experts caution that the success of this solar revolution depends on effective policy reforms. Current regulatory challenges, including inconsistent policies, lack of standards, high taxes, and inflexible financing requirements, hamper private investment growth. Particularly problematic are traditional security requirements which act as barriers for new investors. To overcome these hurdles, ISA recommends adopting financial models centered on cash flow and data-driven approaches to ease investor concerns.

To facilitate on-the-ground coordination and navigate these challenges, the Ethiopian government and ISA will establish National Focal Point Support Units (NSUs). These compact teams of three to four local experts will act as daily operational hubs overseeing all solar projects—from large solar parks to home solar systems and agricultural applications. The NSUs will bridge communication between government agencies and private investors, smoothing policy implementation and resolving emerging financial or regulatory issues.

The partnership also includes pioneering pilot programs aimed at expanding rural electrification sustainably. A 700-kilowatt small power distribution initiative will electrify rural villages, powering not only homes but also small-scale economic activities such as rice milling and bread processing. Critical health services will also benefit, gaining reliable power to store vaccines and perform minor medical procedures. Should this pilot succeed, it is slated for replication in thousands of communities nationwide.

Further bolstering Ethiopia’s solar capacity, the partnership plans to expand and upgrade the Solar Technology Application Resource Center (STAR-C) at Addis Ababa University. The center will evolve into a state-of-the-art testing and measurement laboratory, ensuring solar equipment quality, while providing training to create jobs in installation and maintenance. Additionally, STAR-C aims to foster entrepreneurship, supporting start-ups and generating innovative business ideas among Ethiopia’s youth.