Ethiopia has climbed the ranks of the World Giving Index, showcasing the country’s increasing charitable spirit, according to the latest report from the Charities Aid Foundation (CAF).

In the 2024 edition of the annual index, which surveyed over 145,000 people across 142 countries, Ethiopia placed 32nd globally – a significant jump from its 47th position the previous year. 

The index measures three key aspects of giving behavior – donating money, volunteering time, and helping strangers. Ethiopia performed particularly well in the latter two categories, ranking 22nd globally for volunteering and 35th for helping those in need.

“This is an encouraging sign that Ethiopians are deeply committed to supporting their communities and contributing to the greater good,” said Neil Heslop, CEO of CAF. “Even amidst economic challenges, the country’s spirit of generosity shines through.”

The report highlighted Ethiopia’s vibrant civil society as a driving factor behind the improved rankings. “Recent government initiatives to strengthen partnerships between charities and businesses have likely played a role in boosting volunteering and other forms of community engagement,” Heslop noted.

Ethiopia’s rise comes as the broader East Africa region showed strong generosity levels. Neighboring countries Kenya and Uganda also ranked within the global top 20, demonstrating the region’s tradition of mutual aid and community support.

The World Giving Index results arrive at a critical time, as many developing economies grapple with the lingering impacts of the COVID-19 pandemic and other crises. Ethiopia’s improved ranking underscores the vital role that grass-roots generosity can play in building resilient communities.

“By championing the spirit of giving, Ethiopia is setting an example for the continent and the world,” Heslop concluded. “This is a testament to the compassion and community-mindedness of the Ethiopian people.”

The National Bank of Ethiopia (NBE) has announced the successful completion of the licensing process for Independent Forex Bureaus, expanding the landscape of foreign exchange operations in the country. This significant move allows more individuals and companies to engage legally in the foreign exchange market, a sector that was previously dominated solely by banks.

In July, the NBE introduced Foreign Exchange Directive No. FXD/01/2024, which outlines the requirements for businesses wishing to operate as forex bureaus. According to the directive, eligible entities must be legally established, owned by Ethiopian nationals, non-resident Ethiopians, or foreign citizens of Ethiopian origin. Additionally, they must meet a minimum capital requirement of 15 million birr and provide a security deposit of 30 million birr, which will be held in a blocked account at any bank.

Abebayehu Dufera, the NBE’s Deputy Director of Foreign Exchange Monitoring and Reserve Management, expressed enthusiasm about the new opportunities for forex bureau operations. “We have welcomed those who have expressed interest in opening a forex bureau, and once we resolve the issue with the Minister of Commerce, we will start issuing licenses immediately,” he stated during a panel discussion in Addis Ababa titled “The Significance of the New Foreign Exchange System Change for the National Economy.”

The introduction of forex bureaus comes as Ethiopia seeks to liberalize its foreign exchange market, which has faced challenges due to restrictions on capital flows and imports. Mesenbet Shenkute, President of the Addis Chamber, highlighted that access to loans and foreign exchange reserves remains a pressing concern for the private sector.

The NBE’s decision follows a broader restructuring of the foreign currency system, which includes lifting the ban on 38 imported commodities. This move aims to enhance the flow of capital into the foreign exchange market, allowing for increased exports and improved economic performance.

As Ethiopia navigates this transition, the establishment of forex bureaus is expected to provide more accessible foreign exchange services, thereby supporting the country’s economic growth and stability. The NBE’s commitment to expanding the forex market reflects its ongoing efforts to create a more competitive and efficient financial environment in Ethiopia.

The Ethiopian Insurance Corporation (EIC) has announced plans to tackle the country’s security challenges as it aims to achieve its objectives in the current fiscal year. The state-owned insurer revealed that security issues in various parts of the country have hindered its ability to implement planned initiatives in the previous fiscal year.

In its 37th annual management report, the EIC acknowledged that while it had a successful financial year, numerous difficulties prevented it from reaching its full potential in certain sectors. “The results show that we have had a successful fiscal year, but we faced many challenges that limited our reach,” the report stated.

The EIC attributed some of its operational difficulties to ongoing socioeconomic and political instability, particularly in its branches located in northern and western Ethiopia. This instability has significantly impacted the corporation’s ability to operate effectively in these regions.

Despite these challenges, the EIC reported a total premium revenue of 8.6 billion birr for the last fiscal year, achieving 92.4% of its target. This figure represents a growth of 24.3% or 1.7 billion birr compared to the previous fiscal year. Of the total premiums recorded, 8.3 billion birr, or 96.4%, came from the general insurance sector, while the remaining 306.5 million birr, or 3.6%, was from long-term insurance.

The corporation plans to collect 85% of the premiums recorded in the current fiscal year, but it has already achieved 89.7% of that target, marking a performance of 105.5% compared to the previous year. The EIC also reported a total payout of 2.8 billion birr for claims related to accidents involving customers’ property and lives, which represents an 18.2% decrease from the previous year.

The EIC’s management has emphasized the need for a robust strategy to address the security challenges that have affected its operations. The corporation is committed to enhancing its services and expanding its reach, particularly in areas that have been severely impacted by instability.

As the EIC moves forward, it aims to implement measures that will not only stabilize its operations but also contribute to the overall recovery and growth of the insurance sector in Ethiopia. The organization is hopeful that by addressing these security challenges, it can better serve its customers and achieve its financial objectives in the coming year.