For context, Somalia’s initial alignment with Egypt—an archrival of Ethiopia—came as a response to Ethiopia’s Memorandum of Understanding (MoU) with Somaliland, a de-facto independent region that Somalia considers part of its sovereign territory. Egypt, ever wary of Ethiopia’s growing influence sought to draw Eritrea into a broader coalition aimed at containing Ethiopia’s maritime and Nile River ambitions.

While initially appearing to strengthen Somalia’s position vis-à-vis Ethiopia, the axis with Egypt and Eritrea risked alienating Turkey, in addition to Ethiopia. Turkey, economically the most important partner to Somalia, has poured the most financial and developmental resources into the Horn of Africa nation. Ethiopia for its part is the most crucial in helping Somalia combat the threat of Al Shabab. Losing both strategic partners to placate Cairo and Asmara would be a massive miscalculation, and one that the government of President Hassan Sheikh Mohamud (HSM) would be wise to avoid.

Moreover, the European Union and the United States, which play a significant role in funding the African Union Transition Mission in Somalia (AUSSOM), may oppose the idea of a peacekeeping force composed of both Ethiopia and Egypt—two nations with starkly conflicting geopolitical interests, particularly in light of their longstanding dispute over Nile water resource sharing. The inclusion of both may worsen Somalia’s internal conflicts, especially if each side takes onto backing a certain faction.

Indeed, the Ankara Declaration is a direct response to these competing pressures. By opting for a pragmatic partnership with Turkey and Ethiopia, Somalia ensures that it maintains critical diplomatic and security relationships. In return it recognized Ethiopia’s legitimate quest for reliable and unmediated access the sea. Considering the sea-access question by Addis Ababa, President Erdogan of Turkey stated, “the world is big enough for all of us”. 

This is not to say that Cairo and Asmara are irrelevant to Somalia’s calculations; however, their role in Somalia’s future is limited, and their strategic importance pales in comparison to that of Ethiopia and Turkey.

The Ankara Declaration has not been well-received by Cairo and Asmara. Both are reportedly looking for ways to undermine the agreement, likely out of frustration with Somalia’s shift away from their sphere of influence. Yet, despite their best efforts, Somalia’s government seems unlikely to renege on a deal that was facilitated by its most important international partner, Turkey. Western powers, too, have expressed overwhelming support for the agreement, underscoring its significance on the global stage.

More importantly, Somalia cannot afford to alienate Ethiopia, with which it shares a vast and porous border. For years, Ethiopian troops have been instrumental in combatting Al Shabab, a threat that continues to destabilize Somalia and the wider region. Without Ethiopia’s cooperation, Somalia’s security would be severely compromised, and peace and stability would remain elusive. While Egypt has sought to influence the Horn of Africa, its policies are often distant and disconnected from the practical realities on the ground in Somalia. If it were to send troops to Somalia, it will likely be at odds with Ethiopia’s mission, which would serve to deteriorate the security situation in Somalia. This of course would be a huge loss for Turkey, which needs peaceful coexistence to secure its many investments made in Somalia, which includes a significant share of Somalia’s maritime resources to include fisheries, as well as long range rocket test sites on the expansive Indian Ocean

The government of HSM likely understands that leveraging Egypt and Eritrea as a short-term tactic to put pressure on Ethiopia is just that—a temporary maneuver. Such a strategy might yield some tactical victories, but it cannot be sustained in the long run without endangering Somalia’s broader national interests. The Ankara Declaration, by contrast, offers a durable framework for collaboration with both Ethiopia and Turkey, two key players in Somalia’s future.

Therefore, The Ankara Declaration represents a wise recalibration of Somalia’s foreign policy. While it may have been tempting for Somalia to align itself with Egypt and Eritrea to counter Ethiopia, such a strategy would have come at the cost of essential partnerships with Turkey and Ethiopia. By embracing a more pragmatic approach, Somalia secures its position, as one that values strategic relationships over transient rivalries. For Mogadishu, the path forward is clear: collaboration, not confrontation, is the key to securing peace and stability.

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Hundreds of thousands of people in dozens of cities and towns across Ethiopia’s Amhara region have taken to the streets in a powerful demand for peace. Amid a year of violent conflict between the government and the Fano rebels, demonstrators are calling for an immediate end to the armed conflict, the restoration of safety and security, and the return of normalcy to their daily lives. Demonstrators defied threats by Fano not to come out onto the streets.

The Fano, a group of rebels seeking the violent overthrow of the Ethiopian government in Addis Ababa, has increasingly resorted to brutal tactics in recent months. Their violent campaign has resulted in widespread fear and suffering, including kidnappings, extrajudicial executions, closure of school, and the disruption of entire communities. Despite these grave threats, demonstrators have bravely marched across the Amhara region, demanding an end to the violence that has torn apart families and devastated lives.

Many of the protesters, mostly ordinary citizens who have endured the suffering of conflict for far too long, carried signs with bold messages, calling on armed combatants to lay down their weapons and allow safe passage for students and civilians. The blockades, often set up by Fano fighters to hinder military movement and disrupt daily life, have paralyzed entire regions. For many, the protests represent more than just an end to fighting—it is a call for the restoration of basic human rights and a return to peace.

In recent months, the rebels have executed and kidnapped hundreds. These shocking acts of violence have left scars on the community, leading to a deep sense of grief and outrage. By marching through the streets, these demonstrators are not only mourning the lives lost but are also making it clear that they will no longer stand in silence.

The significance of these protests cannot be overstated. For months, there had been an overwhelming fear of speaking out against the Fano, as the group’s violent retribution against anyone perceived as opposing them was swift and deadly. The fear of retaliation kept many quiet, with citizens forced into a state of constant anxiety and distrust. However, the bravery of these demonstrators marks a new chapter for the region. 

2024 has been a year of intense armed conflict, as Ethiopia’s security forces have engaged in direct combat with the Fano, using drones and airstrikes to target rebel positions. Tragically, these operations have also resulted in civilian casualties, further compounding the region’s suffering. Amid this military escalation, there have even been signs of infighting within the Fano itself, with factions of the group reportedly turning on each other. This fragmentation has made the rebels even more dangerous and unpredictable, further escalating the crisis in the region.

Yet, despite the growing violence, the message from these protests is clear: the people of Amhara are no longer willing to tolerate the endless bloodshed and fear. The unity displayed by protesters across cities is a significant shift in the region’s political and social landscape. For many, this is the first time in months that they have dared to speak out in such a public and unified manner, showing that, even in the face of violence and intimidation, hope for peace can still survive.

This movement, while still unfolding, represents a pivotal moment in the struggle for peace in Ethiopia’s Amhara region. It is a stark reminder that, even in the darkest times, the collective will of the people can inspire change. As these demonstrations continue to grow, there is a renewed sense of hope that the region’s ongoing conflict will come to an end—not through more violence, but through the strength and resilience of its people, standing together in the name of peace.

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Ethiopia, with a population of 130 million, has experienced remarkable economic expansion over the past two decades, positioning itself as one of the world’s fastest-growing economies. As a landlocked country, Ethiopia’s access to reliable and efficient ports is crucial for its trade, imports, and exports. Given this, port services in the Horn of Africa are highly coveted. Historically, Ethiopia relied heavily on Djibouti for access to the sea after losing the ports of Massawa and Assab in 1993, following the secession of Eritrea. Djibouti has since served as Ethiopia’s primary gateway to international trade, with the port of Djibouti handling the majority of Ethiopian cargo.

However, Ethiopia’s dependence on Djibouti has long been a point of strategic concern for Addis Ababa. In recent years, the Ethiopian government has sought to diversify its access to maritime routes to reduce its reliance on a single port. The government has explored several alternatives, including the newly developed port of Lamu in Kenya. However, the progress of infrastructure projects, including vital road and rail connections between Lamu and Ethiopia, has been slow. Political and security challenges have also hindered Ethiopia’s efforts to secure alternative routes through Sudan and Eritrea, limiting the impact of these ports.

As a result, Ethiopia has increasingly turned its attention to other regional ports, particularly in the semi-autonomous regions of Somaliland and Puntland. Both territories—Berbera in Somaliland and Bosaso in Puntland—have been seeking to attract foreign investment, but their status remains contentious. While Somaliland and Puntland both claim independence, the Somali government in Mogadishu regards them as part of its territory, complicating the legal and political landscape for international investors.

The rivalry intensified after Dubai-based DP World, a global port operator, became a key player in the region. After losing the concession to operate the Doraleh Container Terminal in Djibouti in 2018, DP World shifted its focus to the ports of Berbera and Bosaso. It has secured long-term contracts in both locations, promising to invest heavily in their development and significantly improve their infrastructure. This strategy puts DP World in direct competition with Djibouti, which has traditionally been Ethiopia’s main port partner.

In January of this year, Ethiopia and Somaliland reached an agreement allowing Ethiopia to develop port facilities on 20 kilometers of Somaliland’s coastline for a period of 50 years. This agreement gives Ethiopia a foothold in Berbera, positioning it as a key alternative to Djibouti for Ethiopian trade. The move is part of Ethiopia’s broader strategy to diversify its port access and reduce its vulnerability to political and economic changes in Djibouti.

However, Djibouti’s latest strategic move—offering Ethiopia the opportunity to operate the Tadjoura port—appears to be a direct attempt to undermine Ethiopia’s growing involvement in rival ports. Tadjoura, located on the opposite side of the Gulf of Tadjoura from Djibouti’s main port, was completed in 2017. Despite its potential, the port is still relatively small and lacks significant capacity compared to other regional ports. Built at a cost of $90 million, it has just two berths, a short Roll-on/Roll-off (RoRo) quay, and a depth of 12 meters, which limits its ability to handle larger vessels. Nonetheless, Djibouti’s offer to let Ethiopia operate Tadjoura represents an effort to create a new avenue for Ethiopian trade, while also attempting to solidify Djibouti’s role as Ethiopia’s primary port partner.

Djibouti’s decision to involve Ethiopia in the operation of Tadjoura is likely motivated by several factors. First, it may be an attempt to secure Ethiopia’s continued reliance on Djibouti for access to the sea, even as Ethiopia seeks alternatives. By offering Ethiopia the chance to develop Tadjoura, Djibouti may be trying to ensure that Ethiopia does not fully commit to the rival ports in Somaliland and Puntland. Second, it reflects the growing importance of port infrastructure in the region, where access to seaports is not just an economic matter, but also a strategic one.

While Tadjoura’s infrastructure may still be modest, its potential role in Ethiopia’s broader trade strategy should not be underestimated. With ongoing regional competition for access to Ethiopia’s booming economy, the outcome of this port rivalry will likely have far-reaching implications for the Horn of Africa’s geopolitical and economic landscape. As Ethiopia continues to explore alternative port options, including its growing involvement in Somaliland, Djibouti will need to carefully balance its offers with the broader regional competition to maintain its position as Ethiopia’s primary maritime gateway.

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The Ethiopian government has been working for four years to establish a securities exchange as part of its broader economic reform and liberalisation agenda. This includes the recent decision to allow the Ethiopian birr (ETB) to float freely and open up strategic sectors such as banking and telecommunications to competition.

The exchange’s debut will feature several significant state-owned enterprises, including Ethio Telecom, the Ethiopian Insurance Corporation, and the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), which will be listed on the platform. The government views the move as a way to break the long-standing dominance of nationalised entities in the economy, increase Ethiopia’s global competitiveness, and attract foreign direct investment.

Local reports suggest that over 90 companies are expected to list on the exchange within its first few weeks of operation. So far, the exchange has raised approximately 1.6 billion birr (around $13 million) in capital.

In a bid to bolster investor trust and ensure the safety of investments, ECMA has introduced new transparency and disclosure rules. These measures are intended to enhance the credibility of the market and reassure both local and international investors.

At a recent event in Addis Ababa, Hana Tehelku, the Director-General of ECMA, highlighted that the new guidelines are essential for creating a well-regulated capital market. She explained that the measures focus on increasing transparency, standardising processes, and safeguarding investor interests, all in alignment with the country’s broader economic objectives.

The new rules include mandatory annual audited financial statements for listed companies, along with ongoing communication with shareholders. To further protect investors, a “pre-emptive rights” clause will allow existing shareholders to maintain their proportional ownership when additional shares are issued, thus preventing dilution of their holdings.

Additionally, companies will be required to demonstrate adequate capital reserves to reduce the risk of defaults and protect shareholder investments. ECMA will oversee the implementation and enforcement of these regulations.

While such regulations are common in many stock exchanges globally, some African markets have faced challenges in assuring investors of the safety of their capital due to insufficient transparency and weak disclosure practices.

A 2022 report from the African Development Bank (AfDB) noted that international investors may hesitate to engage in markets where they lack confidence in the disclosure standards, even if the underlying investments appear solid.

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The new airport will be situated near Bishoftu, approximately 45 kilometers southeast of Addis Ababa, the nation’s capital. Once operational, it is expected to have four runways and accommodate up to 100 million passengers annually and feature parking facilities for 270 aircraft, according to Tasew. The new hub of EAL will be connected to Addis Ababa via train. In addition, the already existing Addis-Adama toll road will be linked to airport terminal.

The design work for the airport will be undertaken by Sidara, a Dubai-based engineering and consulting firm. Tariq Al Qanni, the firm’s Director of Operations, confirmed their involvement in the project.

The initiative to build this massive infrastructure was first unveiled in 2018. Mesfin highlighted that the current primary airport, Bole Addis Ababa International Airport, which serves as the main hub for Ethiopian Airlines, is nearing its limit with a passenger capacity of 25 million per year. It is expected to continue operating after the construction of the Bishoftu hub is completed, to accommodate the continents increasing demand for air travel in the decades ahead.

“This new airport project is a major endeavor expected to be completed within five years. It will be the largest airport in Africa,” Mesfin remarked. He elaborated that the initial phase of construction alone will require an investment of at least $6 billion, with funding to be sourced through loans. Several companies have already expressed interest in participating in the project.

In the financial year 2023/2024, Ethiopian Airlines transported 17 million passengers and anticipates an increase to 20 million passengers in the current fiscal year that began in July. The Airline plans to double its current capacity by 2034 with the purchase of 104 new aircraft from Boeing.

In May Boeing agreed to set up its new Africa head quarters in Addis Ababa.

Moreover, in a bid to make its fleet energy consumption more sustainable, the airline recently entered an MoU with Satarem Ameerica Inc. The move aims to produce sustainable aviation fuel from sugar cane ethanol locally. This partnership aims to reduce carbon emissions and support global climate efforts by integrating SAF into Ethiopian Airlines’ operations.

Recent developments taking place at Ethiopian Airlines is the biggest shakeup in the company’s history. It sets the stage for growth in the 21^st century, in which Africa will become a major market for aviation.

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Located in the Oromia region, the Asela Wind Power project is set to add 100 MW to Ethiopia’s energy grid. Yidnekachew reported that each wind tower’s foundation requires between 7 and 12 days to complete. The project is scheduled to begin generating electricity by December 2024, with remaining construction tasks expected to be finalized within this timeframe.

Funded by a €145 million investment from Ethiopian Electric Power, the project benefits from substantial financial support through a Danish government subsidy and loan. This partnership exemplifies Denmark’s commitment to advancing global renewable energy initiatives while leveraging its expertise in wind technology. The Danish contribution brings cutting-edge technology and best practices to Ethiopia, ensuring both the efficiency of the windfarm and the transfer of valuable technical knowledge.

The Asela Windfarm will play a pivotal role in enhancing Ethiopia’s green energy capacity, helping the country reduce its reliance on fossil fuels and decrease its environmental footprint. This expansion is crucial for strengthening Ethiopia’s energy infrastructure, providing a more reliable and sustainable power supply that supports industrial growth and improves the quality of life for its citizens.

The project also promises significant economic benefits, including job creation and local economic development. The construction and operation of the windfarm will generate numerous employment opportunities, ranging from construction roles to technical positions in wind turbine maintenance, thereby building a skilled workforce in the renewable energy sector.

Moreover, the successful collaboration between Denmark and Ethiopia fosters increased trade relations and sets a positive precedent for future international partnerships in green energy. By advancing global climate goals and showcasing the benefits of international cooperation, the Asela Windfarm project highlights how shared expertise and resources can drive progress in sustainable development.

Upon its completion, the Asela Windfarm will boost Ethiopia’s total wind power generation capacity to 544 MW, contributing to the country’s efforts in combating climate change and promoting sustainable development. This project stands as a testament to the powerful impact of international collaboration in achieving green energy goals and fostering economic growth.

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The report added, ‘Pezeshkian also condemned the assassination of Ismail Haniyeh, Chairman of the Hamas Political Bureau, describing it as a heinous and inexcusable act that will not go unanswered’. He criticized the international community’s failure to act against the atrocities committed by the Zionist regime in Gaza, calling the attacks on defenseless women and children historically unparalleled.

Eritrean Foreign Minister Osman Saleh Mohammed congratulated Pezeshkian on his presidency and advocated for strengthening ties between Iran and Eritrea. He also denounced the assassination of Haniyeh and extended condolences to both Iran and Palestine.

Despite years of Western-led sanctions against it, Eritrea’s government has proven adaptable and determined to survive at any cost. It frequently changes its alliances to ensure its continued existence. Whether dealing with the Palestine Liberation Organization and Israel or Saudi Arabia and Iran, the regime continuously shifts its positions to navigate its survival.

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The ban was driven by Ethiopia’s substantial fossil fuel import bill, which exceeds $5 billion annually and heavily strains the country’s foreign currency reserves. Additionally, the move aims to take advantage of Ethiopia’s growing electric production capacity. With the recent activation of the Grand Ethiopian Renaissance Dam (GERD), which adds approximately 15,500 GWh of clean electricity to the national grid, Ethiopia now has ample renewable energy to offset the cost of importing fossil fuels. 

There is no better time than now to boldly begin the electric transition, particularly as the more of these vehicles become affordable. Recent news of China’s overcapacity in EVs and the import barriers placed on them by U.S and E.U means Chinese producers will seek to offload these cars in global south markets, including Africa, Middle East, South Asia, and South America. This provides a unique opportunity for these countries to transition towards EVs. 

This week, Ethiopia unveiled major economic policy reforms, including:

• Transitioning to a market-based foreign exchange system, allowing banks to freely trade currencies, and limiting National Bank of Ethiopia (NBE) interventions.
• Eliminating the requirement for exporters to surrender foreign exchange to the NBE, thereby increasing FX supplies for the private sector.
• Lifting import restrictions on 38 product categories, though the ban on gasoline powered vehicles remains in effect. Import restrictions on capital account outflows continue.

The ban on gasoline vehicles, including fully built cars and three-wheelers, aims to reduce the import of such vehicles, thereby decreasing demand for foreign currency and fossil fuels. Despite the restriction, imports of electric vehicles (EVs) and EV kits have surged, supported by a reduction in import duties and taxes for these vehicles.

In a recent clarification, the Finance Ministry reiterated that while imports of fully gasoline vehicles are prohibited, knocked-down kits for local assembly are still permitted. This policy shift supports the local assembly of EVs over gasoline vehicles, aligning with global trends and encouraging investment in EV production.

However, the abrupt nature of the ban has faced criticism from some Ethiopians who point out the lack of public charging infrastructure, service centers, and trained technicians for EVs. Maintaining these vehicles has been challenging due to a lack of local expertise and adequate support infrastructure. New owners struggled with repairs, having to rely on online resources and a manual in Mandarin, and his employer incurred extra costs for installing charging points due to the city’s insufficient public charging infrastructure.

Despite these challenges, the Ethiopian government remains committed to its ambitious green energy transportation goals, which it acknowledges will take some time to fully be adequate.

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The airline achieved a milestone by transporting a record 17.1 million passengers so far this year, comprising 13.4 million international and 3.7 million domestic travelers.

However, cargo operations faced difficulties. The airline managed 754,681 tons of cargo, generating $1.65 billion in revenue, but this marked an 8% decline from the previous year.

Ethiopian Airlines has been aggressively expanding its fleet, adding five new aircraft to reach a total of 145. The carrier now serves 139 international and 21 domestic destinations, excluding its hub at Addis Ababa Bole International Airport (ADD).

CEO Mesfin Tasew noted that global aviation has been impacted by geopolitical conflicts such as the Russia-Ukraine war and the Sudan conflict, alongside rising fuel prices. Despite these hurdles, the airline delivered strong results in the past couple of years.

Looking ahead, Ethiopian Airlines plans to carry 20 million passengers this fiscal year and introduce five new routes. Additionally, it has ordered 125 new aircraft to support its growth strategy.

“The airline’s performance aligns with our 2035 growth strategy. We will focus on expanding our network, enhancing infrastructure, and developing human capital to boost our international competitiveness,” stated Mesfin Tasew, CEO of Ethiopian Airlines Group.

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In addition, sources indicate Sudan’s Sovereign Council Chairman and army chief, Abdel Fattah al-Burhan, also sent a high-ranking official to Cairo to invite Egyptian President Abdel Fattah Al-Sisi to Port Sudan. This invitation appears to coincide with the call extended to Eritrean President Isaias Afwerki and Ugandan President Yoweri Museveni.

The Sudanese navy welcomed the Eritrean vessels, which arrived on the orders of President Afwerki to show solidarity with the Sudanese people and reinforce the close ties between the two nations. Senior Sudanese naval officers were on hand to greet the Eritrean delegation.

The sudden overture from Asmara appears to be designed to assuage the Sudanese, following Eritrea’s declaration that Sudanese chargé d’affaires Khaled Hassan was persona non grata, giving him three days to leave.

Sudanese Foreign Ministry Undersecretary Hussein al-Amin announced that Sudan is seeking clarification from Asmara about the expulsion decision. Sudan views Eritrea’s dealing with its eastern Beja tribesman with suspicion. Images were recently shared on social media of a meeting between President Isaias Afwerki and Sudanese Beja tribal leader Mohamed Amin Turk.

Dispute recent discrepancies however, the Sudanese army has had good relations with Afwerki, who has been praised by Sudanese officials for his stance against foreign support for the Rapid Support Forces.

The head of the Eritrean naval delegation stated, “We are here to affirm our support for Sudan and its military forces,” expressing hope that Sudan overcomes its crisis and rejecting foreign interference. He highlighted the strategic alliance between Eritrea and Sudan.

Analysts also suggested that Eritrea’s gambit is in response to Ethiopia and other regional players who have recently courted Sudan’s army chief. The subtle diplomatic tensions between Ethiopia and Eritrea became more visible recently, as Eritrea sought to suspend Ethiopian Airlines flights into the country. Asmara will seek to dilute Ethiopian influence in Sudan alongside Egypt, which also views Ethiopian initiatives in Sudan with suspicion. This is particularly the case given the fact Egypt and Ethiopia have yet to reach an agreement on the operation of the Grand Ethiopian Renaissance Dam, which is now for all practical purposes complete.

During his visit to Port Sudan, Ethiopia’s Abiy Ahmed was able to facilitate a call between Al Burhan and UAE monarch Mohammed Bin Zayed, who was up until recently accused by the Sudanese army chief of aiding his opponent, the RSF. There are now plans for the UAE and Sudan’s warring parties to hold an in-person meeting in Addis Ababa. 

Arrival of Eritrean warships followed a visit by Ethiopian Prime Minister Abiy to Port Sudan reflect frustration over being sidelined from settlement efforts and a desire to emphasize its alliance with Sudan amidst ongoing international and regional negotiations.

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To sustain this progress, Ethiopia has introduced HGER 2.0, focusing on establishing a stable macroeconomic framework, enhancing the investment and trade environment, boosting productivity, and improving public sector efficiency. The new phase aims to continue high economic growth while lowering inflation, setting the stage for ongoing development and job creation.

The National Bank of Ethiopia has recently shifted to an interest rate-based monetary policy, part of a three-year strategy to control inflation. Fiscal reforms are also underway to ease public finance pressures, including improved revenue collection, optimized spending, social safety nets, pension system restructuring, and better public debt management.

A recent agreement with the International Monetary Fund (IMF) includes significant foreign debt relief, restructuring, and a free-floating exchange rate. This agreement has secured a $10.7 billion financial package from the IMF, World Bank, and other lenders, which will support the macroeconomic transition, particularly the Birr’s floating exchange rate. Additionally, $2.7 billion from bilateral lenders will be used for currency swaps to facilitate trade, making Ethiopia one of Africa’s top recipients of international financial aid.

In the next few months analysts expect the Birr’s exchange rate to stabilize around the current parallel rate of 118 to the dollar. The move should help ease availability of hard currency in the country, as more and more transactions funnel through official channels, and away from the black market. Some economist worry however, that these changes are too liberal, making it easier to export foreign exchange, desperately needed for a developing economy. They also caution against a cost of living crisis as a result of rising import costs.

To ensure the successful implementation of these reforms, the government is reinforcing key institutions such as the National Bank of Ethiopia, the Ministry of Finance, and the Ministry of Planning and Development. These efforts align with Ethiopia’s long-term development goals and will be closely monitored.

The government also plans to use funds to protect vulnerable populations through enhanced social safety nets, wage subsidies for government employees, and partial subsidies for fuel price increases. The reform process will be continually reviewed and adjusted based on current data. Regular updates will be provided by the Ministry of Finance and the National Bank of Ethiopia.

As Ethiopia attracts more foreign direct investment, key indicators like price stability and law and order will be crucial for maintaining its status as a promising African economy. However, concerns remain about how the flexible exchange rate might impact the cost of living, especially given recent experiences in Nigeria and Kenya where similar reforms led to increased consumer prices. How Ethiopia manages these challenges in the coming months will be closely watched.

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Abiy’s penchant for mingling with the public, often without the usual security entourage, puts him at unnecessary risk. The presence of threats from rebels and foreign agents targeting him and his administration cannot be ignored, particularly given the fact several leaders have already been assassinated in Ethiopia recently. His readiness to bypass established security measures suggests a concerning lack of influence from his chief of staff on critical safety matters.

During his early tenure from April 2018 to 2020, Abiy struggled to free himself from restrictive security measures imposed by guards loyal to the previous regime. Speaking to Parliament in 2021, he revealed this period as “one of imprisonment in a palace,” reflecting his frustrations with being constrained by those tasked with his protection. Abiy successfully used his public appeal as a tactic to free himself and his office during those early and dangerous months of transition, where many of his security detail were loyal to his forerunners, who were of course out to impede his work.

Those day are now long gone. Significant reforms have since been applied to the Republican Guard—Ethiopia’s secret service, now more professional and less politically motivated—the effectiveness of these measures remains in question however. Recent public outings, such as the PM’s walk from his residence to the science museum, seemed impromptu and inadequately secured, raising doubts about whether these events are properly vetted and approved by security officials. They indicate an abrupt decision by the PM to walk across a busy street, as guards tried catching up.

As Prime Minister Abiy continues to navigate these public appearances, the balance between demonstrating public confidence and ensuring his safety remains important. 

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