Monday, September 29, 2025
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Impulsive Developmental Agendas-Consequences

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I got some kind of moral vindication when I heard a segment of the light railroad would be taken down soon. The remaining lines have hardly any future either- considering top gun PPs have characterized them as ‘crimes against the aesthetics of 21 C century urban architecture’.

You know why? Because the memory is still fresh and families affected by the ill-advised venture are still paying the price in the name of ‘public interest’.  Again refresh my memory for me, who was the Minister Urban Development and Construction back then? Makes me wonder…

 However it would be utterly unrealistic to totally deny the significance of the light railway. Let us not forget Afro-centric themed media outlets to this day advertise it as a symbol of the new face of Africa.

Now the ever witty Addis folks are saying stuff like they are ditching cabs and buses to take the ‘epic’ train ride as its days are numbered. ‘At least we need a memory to share with our kids when we grow older,’ they muse and for some reason it makes me ponder the fate of the ‘Corridor Developments’ ventures after two years when a new government will be sworn in.

1-‘It wasn’t me!’

Decades ago EPRDF concocted a breakthrough secret to eternal prosperity and summarized it in few words to us- ‘harvesting surface water’.  It was propagated in such noble terms that it was considered a hallowed subject to counter.  We shook our heads in disgust at our forefathers for not being able to figure this out in the three thousand years of their civilization…until we were flooded with breaking news of malaria epidemic a few years later, that is.  

The problem with impulsive development ventures is they tend to be little integrated in to the fabrics of the overall economy. Who wouldn’t be happy if the all season, back to back, extensive wheat farming is indeed sustainable and Ethiopia becomes a net exporter of the produce? The very idea is noble and I am glad FAO had extended its admiration for it, however, folks at FAO also know of another wheat farming adventure in their host country close to a hundred years ago. It didn’t work out.

Just like in the song lyrics, this is the defense የለዉጡ መንግስት comes up with whenever it screws up something big time. It wasn’t me!’ PP would have earned our respect had it tried to make Addis Light Railway a success story against all odds.  If and when it fails the incumbent is collectively and individually responsible for the consequences as they have committed three generations of Ethiopians in perpetual debt to the Chinese.  

2- The reclusive macro economy team members

Fold your sleeves, tuck in your shirts and come out in to the open public space and tell us what you are doing.  You owe it to us as you are messing our lives big time, the least you could do is ‘explaining it to us’. We might understand you know.

Implicitly we know what you are going to say in your defense, ‘why even officials of the US government sometimes screw up’. They certainly do but they are accountable, they have the gut and the courage to appear before Congressional Committees and tell their side of the story. I know the Parliament doesn’t have the appetite to bother hard pressed officials busy running the government but you have taken a solemn oath to be true to your conscience as well. Yeah we have occasionally heard from the junior partners of the team but they were hardly convincing and sounded more like mouthpieces.  

So what we do, we hold the likes of Kibur Genna, Zemedeneh Nigatu, Alemayehu Areda and Constatine Berhe accountable to us- in their capacity as Ethiopians- and literally demand them to explain to us ‘what the government is up to’. God bless them, they don’t hesitate to oblige.

3- Blame it on the Usual Suspect!           

 The one thing I like about this government is it has got this huge capacity to absorb shocks. The public may scream its head off until its tonsil cracks but the incumbent has this raw thick hide to shrug it off taking solace in the trend that every dust eventually settles. I see little wisdom in it but it kinda makes me admire the majestic indifference.

Coming to think of it, the indifference emanates from this established African governance mentality-you can always blame any kind of dissatisfaction directed against the government on the usual suspect. Who is the usual suspect? Need I even dare to say it, of course the Eternal Enemies of Peace, Prosperity and Sovereignty. 

One has to give it to the government. It has established so many public organs with so many ‘Vision, Mission and Values’ to accommodate diversity that we have lost count of them. I would dare anyone of them to explain to us why the Usual Suspects are all for the GERD but against the urban beautification project?  What would you say to folks who sadly observe ‘ቤቱ አልቆመ ለፊንሽንጉ መባዝን…

What is the symbolic significance of kicking poor folks from the City Center?  Wouldn’t that suggest shipping the poor to a mercato indigino ? How is that any different from busing the destitute of Addis to Kotebe during the Imperial era? How could one try to console the displaced ‘now you can come on weekends to visit the old place with your family’?  On weekends, for God’s sake!

Personally I am not against developing the City centers; inner cities in every mega cities are dens of crime and veritable challenges to city administrations across the world.  I stand to be corrected but I don’t remember any place where the poor are kicked out to make space for the glamor of the rich. I mean Harlem is in the greater Manhattan neighborhood, isn’t it? 

We expected Mayor Adanech to explain to us the genesis and consequences of the project; instead the Premier came aboard and demonized the unconvinced in such mean terms as ‘prisoners of catacombs’. He heaped abuses on us saying we don’t have the slightest clue what a city is…and I was like neither do you, Sir. Your team is bending backwards trying to serve residents they hardly relate to. In all honesty, how could one serve folks he doesn’t relate to?

Not long ago Berhanu Nega had lectured us on the art of city governance. As I remember it, it was the exact opposite of what is being implemented.  What I am trying to say is for a change, lending ear to the outcasts wouldn’t hurt in lieu of blaming every resistance on a handful of ‘ክልፍልፍ ጄነራሎች’ – that didn’t do the Dergue any good either.

4-A Narcissistic Government?

Bottom-line, when a government frequents contemplates its reflection in the water, it begins to make the ultimate descent from its Olympian heights.   The silver lining to the foregoing is our government is preoccupied with beauty. በዉበት የተጠመደ መንግስት might not fail to understand the fact that beauty is in the eyes of the beholder and PP’s beauty might not be my joy forever.

God Bless. .   

You can reach the writer via estefanoussamuel@yahoo.com

Currency Devaluation and The Poor: An Empirical Analysis

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Currency devaluation involves reducing the value of a country’s currency relative to other currencies. While it can help boost exports and reduce trade deficits, its effects on different income groups, particularly the poor, are complex and multifaceted. This article investigates how devaluation impacts impoverished populations, focusing on the interplay between macroeconomic changes and individual economic conditions.

Currency devaluation lowers the exchange rate, making exports cheaper and imports more expensive. This can stimulate domestic production and reduce trade deficits. However, the theoretical benefits of devaluation come with potential downsides, particularly for low-income individuals who may face increased living costs without corresponding income growth.

Richard Cooper of Princeton University stated that there are several primary mechanisms through which devaluation affects the poor. Devaluation often leads to higher prices for imported goods, contributing to overall inflation. Since the poor spend a larger proportion of their income on necessities, they are disproportionately affected.

A weaker currency erodes the purchasing power of individuals, making it more challenging for low-income households to afford basic goods and services. According to Richard Cooper while devaluation can create jobs in export-oriented industries, it can also lead to job losses in sectors reliant on imports. Reduced government revenues and increased costs can impact public services, disproportionately affecting those who rely on them.

E.R. Yescombe, in his book titled “Principles of Project Finance enumerates a number of empirical evidences can explain well the impact of Currency Devaluation on the poor. During Argentina’s economic crisis in 2001-2002, the government devalued the peso, leading to a sharp increase in inflation and a rise in poverty rates. Data indicate that the poorest households experienced severe declines in real income and faced challenges accessing essential services.

Zimbabwe’s hyperinflation period of 2007-2008, marked by significant currency devaluation, resulted in extreme price volatility. The poor faced unprecedented shortages of basic goods and services, exacerbating their economic hardship.

In Turkey, recent currency devaluation contributed to higher inflation and reduced real wages. Low-income families, who spend a large share of their income on essentials, were particularly hard-hit, facing reduced living standards and increased financial stress.

Here the crucial question which needs to be thoroughly analyzed is “what are possible policy responses and mitigation strategies to address the impact?” There are several options in which Social Safety Nets is one.

Strengthening social safety nets can help cushion the impact of devaluation on the poor. Targeted cash transfers, food subsidies, and inflation-adjusted welfare payments can provide crucial support during periods of economic instability.

Inflation control is another mechanism. Implementing measures to control inflation, such as monetary policy adjustments and price controls on essential goods, can mitigate the adverse effects of devaluation on low-income households.

Employment and Skill Development is one option to address the problem. Investing in employment programs and skill development initiatives can help low-income individuals adapt to changing economic conditions and benefit from new job opportunities created by devaluation.

Sustainable provision of Public Services is also one of the mechanisms. Maintaining and improving access to essential public services, including healthcare and education, can help reduce the burden on the poor during economic downturns.

To conclude,Currency devaluation, while offering potential macroeconomic benefits, can have significant adverse effects on impoverished populations. The increased cost of living, reduced purchasing power, and potential disruptions in public services can exacerbate poverty and inequality. Policymakers must consider these impacts when implementing devaluation and develop comprehensive strategies to protect vulnerable groups. Effective social safety nets, inflation control measures, and investments in public services and employment can help mitigate the negative effects and promote more equitable economic outcomes.

Name: Elias Gebrselassie

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2. Education: BSc

3. Company name: Primis Building Finishing Work PLC

4. Title: Manager

5. Founded in: 2018

6. What it does: Construction Finishing

7. Head quarters: Abtam Tower, Lebu

8. Start-up capital: 30,000 birr

9. Current capital: 1,000,000 birr

10. Number of employees: 7

11. Reason for starting the business: Profitability

12. Biggest perk of ownership: Financial freedom

13. Biggest strength: Being committed for what I stand for

14.  Biggest challenge: Clients not obeying payment terms

15.  Plan: Expanding the company to a grade 4 construction company

16.  First career path: Teacher

17.  Most interested in meeting: Liqe Liqawint Ezra Hadis

18. Most admired person: Birhanu Admas

19. Stress reducer: Praying

20. Favorite book: The Holy Bible

21. Favorite pastime: Spending time with family

22. Favorite destination to travel to: Israel

23. Favorite automobile: I don’t have any.

Yagout, ETHSWITCH partner to implement digital payment system

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In a significant move towards modernizing Ethiopia’s financial landscape, Yagout, a leading fintech company, has entered into an agreement with ETHSWITCH, the national switch operator, to implement a comprehensive digital payment system. This partnership aims to revolutionize the way customers transact and businesses operate in the country.

The agreement allows customers to use any bank’s card through the ETHSWITCH network to make payments using Yagout Pay Posse, a convenient and secure platform. This integration not only benefits consumers but also empowers traders by offering them the Yagut Pay Pos service as an alternative to the POS tools provided by banks.

Teshome Alemayehu, CEO of Yagout Pay, expressed optimism about the partnership, stating, “We are committed to expanding our reach and providing seamless payment solutions to the people of Ethiopia.” He further revealed that the number of POS machines is expected to increase to 10,000 within the next year, a testament to the company’s ambitious growth plans.

Yagout Pay, founded just a year ago, offers innovative solutions such as smart and mobile payment-enabled POS and Pay Gateway services. These services enable individuals to process payments using their mobile phones and payment cards, making transactions more convenient and accessible.

The implementation of this digital payment system is a crucial step in the development of Ethiopia’s economy. By leveraging the expertise of both Yagout and ETHSWITCH, the partnership aims to drive financial inclusion, reduce cash dependency, and promote the growth of digital commerce in the country.

Alemayehu emphasized the significance of the agreement, stating, “This partnership is a testament to our commitment to empowering businesses and individuals with cutting-edge payment solutions. We are confident that this collaboration will pave the way for a more prosperous and digitally-driven economy in Ethiopia.”

As the country continues to embrace technological advancements, the Yagout-ETHSWITCH partnership represents a significant milestone in Ethiopia’s journey towards a cashless society. By providing a reliable and efficient digital payment infrastructure, the collaboration aims to unlock new opportunities for businesses and consumers alike, fostering economic growth and financial inclusion in the years to come.