#Ethiopia to make digital ID compulsory for access to government services

In a recent interview with local news portal Shega, Yohade Zemichael, Executive Director of the Ethiopia National ID program (NIDP), disclosed plans for a mandatory #digital_ID requirement for all Ethiopians accessing government services. This initiative aligns with the government's broader strategy to fully integrate services into the digital ID framework.

Although fewer than four million citizens are currently enrolled in the digital ID system, known as #Fayda, the government aspires to register 90 million eligible citizens by 2028, facing delays from the original 2025 target. While not obligatory, the Digital ID Proclamation passed by Parliament empowers both government and private institutions to deny services without the digital ID. NIDP has initiated various measures, making Fayda mandatory for civil servants and students. Collaborations with UN agencies and banks aim to expedite digital ID adoption, especially for vulnerable groups.

The Federal Ministry of Justice plans to mandate digital ID presentation for access to its services. Ethiopia secured $350 million from the #World_Bank for the "Digital ID for Inclusion and Services Project," aiming to enhance digital infrastructure and services nationwide.

https://www.biometricupdate.com/202401/ethiopia-to-make-digital-id-compulsory-for-access-to-government-services

#Ethiopia seeks extension for implementation of #EU deforestation-free regulation

Ethiopian officials are raising alarms about the upcoming enforcement of the European Union Deforestation-Free Regulation (#EUDR). They cite challenges for countries like Ethiopia, where coffee is grown by smallholder farmers within fragmented systems.

Following a high-level consultative session involving the Ethiopian government, EU Member State Embassies, #UN agencies, and the #World_Bank, concerns were voiced. The session unveiled Ethiopia's National Action Plan to key development partners in the coffee sector. Semereta Sewasew, State Minister for Finance, expressed hope for a positive response from the EU regarding a requested time extension to align with EUDR compliance measures.

The EUDR, effective from 30 December, 2024, targets products like coffee, aiming to reduce the EU's contribution to climate change and biodiversity loss. Ethiopia's National Action Plan outlines steps for EUDR compliance over three years. The plan, developed by the Coffee and Tea Authority with Finance and Agriculture Ministries, recognizes coffee's significant role in Ethiopia's economy.

https://addisstandard.com/news-ethiopia-seeks-extension-for-implementation-of-eu-deforestation-free-regulation/

Cash dominance a barrier to M-Pesa uptake in #Ethiopia

#Safaricom Ethiopia's #M_Pesa faces hurdles in penetrating the market due to the prevalent use of cash, particularly for small transactions. Despite banking penetration in urban areas, 99% of small transactions are still conducted in cash, hindering M-Pesa's growth.

Since its launch in August 2023, M-Pesa garnered 1.1 million customers, processing transactions worth Ksh43.7 billion ($29.13 million) with 12,400 active merchants. However, cash remains king in Ethiopia, as reported by the #World_Bank, contrasting sharply with neighboring #Kenya's digital payment trends.

The social construct favors informal money transfers, posing a challenge for M-Pesa's town-to-village transfers. Moreover, low financial service penetration, with only 11% accessing loans, underscores the struggle. Ethiopians largely rely on informal savings and borrowing from friends or family.

Safaricom aims to overcome these obstacles through strategic partnerships, including local banks and international money transfer services. Initially focusing on consumer payments, M-Pesa plans to expand to merchant payments and financial services like micro-credit.

https://www.theeastafrican.co.ke/tea/business/cash-dominance-a-barrier-to-m-pesa-uptake-in-ethiopia-4550786

M-PESA #Safaricom partners with #Onafriq, enabling the flow of remittances to #Ethiopia

#M_PESA Safaricom has forged a groundbreaking partnership with Onafriq, Africa's leading digital payments network, to facilitate international money transfers, particularly benefiting Ethiopia. Onafriq, operating across 40 #African nations, brings a vast digital infrastructure to the table.

M-PESA, renowned for its user-friendly financial services accessible via mobile phones, now extends its reach to Ethiopia, allowing individuals to receive remittances worldwide without the need for a bank account, just a Safaricom sim card. This move follows approval from the National Bank of Ethiopia (#NBE) in 2023.

With sub-Saharan Africa witnessing a surge in remittances, reaching $54 billion in 2023 according to the #World_Bank, Ethiopia stands out as a significant recipient, with over $5 billion flowing in annually. Paul Kavavu, General Manager at Safaricom Ethiopia, expressed enthusiasm, highlighting the partnership's role in simplifying payments and providing a formal channel for the Ethiopian Diaspora to support their families back home.

https://www.electronicpaymentsinternational.com/news/m-pesa-safaricom-partners-with-onafriq-enabling-the-flow-of-remittances-to-ethiopia/

World Bank study links high temperatures to lower exam scores in #Ethiopia

A new study by the #World_Bank's Development Research Group has revealed a significant correlation between high temperatures and declining academic performance among students in Ethiopia. The research, titled "High Temperature and Learning Outcomes: Evidence from Ethiopia," examined the effects of heat on scores in the country's high-stakes university entrance examinations.

The study analyzed data from over 2.47 million Ethiopian students who took the Higher Education Entrance Certificate Examination between 2003 and 2019, combined with school-level temperature records during the same period. Researchers found that students exposed to more hot days (above 33°C) during the school year tended to perform worse on the entrance exams compared to those in cooler environments.

According to lead researcher Patrick Behrer, "Ten additional hot days during a school year leads to a 2.28 percent decline in performance on college entrance exams." The findings suggest that high temperatures negatively impact students' ability to concentrate, attendance, and overall effort, particularly in more challenging subjects.

While all students were affected by heat, the impact was more pronounced among male students, potentially due to higher rates of extended absences compared to their female counterparts. The study also indicated that the detrimental effects of heat were more significant for simpler subjects, as students may exert more effort on difficult subjects, mitigating some of the heat's impact.

https://www.downtoearth.org.in/news/africa/world-bank-study-reveals-high-temperatures-linked-to-lower-exam-scores-in-ethiopia-95301

#World_Bank launches $1.4 billion initiative to revamp #Ethiopia's power sector

An initiative by the World Bank known as the Power Sector Reform, Investment, and Modernization in Ethiopia program (#PRIME) is poised to overhaul and expand Ethiopia's electricity network, enhance sector financial stability, and foster renewable energy production through private sector collaboration.

Over the next decade, the World Bank will join forces with Ethiopia, committing up to $1.4 billion to support the implementation of PRIME. The program's initial phases will prioritize crucial infrastructure investments and sector-wide reforms. Subsequent phases of PRIME will concentrate on mobilizing private sector involvement in the power sector.

To kickstart the implementation of the first phase, the World Bank has granted a $522 million credit.

https://www.africa-newsroom.com/press/energizing-ethiopia-new-world-bank-program-expands-access-to-electricity?lang=en

Tensions rise as landlocked nations, including #Ethiopia, face economic pressures

Landlocked nations in #Africa often face significant hurdles in meeting the needs of their citizens due to higher prices for goods and logistical challenges. Kenyan Prime Cabinet Secretary Musalia Mudavadi emphasized the urgency of addressing these concerns for the 378 million people residing in 16 landlocked countries across the continent.

Recent developments, such as Ethiopia's negotiation for access to the port in #Somaliland and concerns over sea access, highlight the importance of maritime commerce. The impact of global events, like the #Red_Sea crisis, further exacerbates the situation, disrupting supply chains and increasing costs.

The #World_Bank's findings underscore the economic disparities, with landlocked countries spending significantly more on trade logistics compared to coastal nations. Despite initiatives like the Vienna Plan of Action, aimed at promoting sustainable development in landlocked countries, experts stress the need for further investment in transportation infrastructure and regional integration to bridge the land-sea divide.

https://adf-magazine.com/2024/04/conflict-looms-as-landlocked-nations-feel-pinch/

#Kenya’s port of #Mombasa falls behind #Berbera in World Bank rankings

For the second year in a row, Kenya’s Port of Mombasa has ranked below Berbera in the #World_Bank’s Container Port Performance Index. Mombasa dropped to 328th position globally out of 405 ports, down from 326. Meanwhile, the Port of Berbera climbed to 106th from 144th, highlighting its increasing efficiency and prominence.

Despite Mombasa’s decline, it still fared better than Dar es Salaam, which fell to 367th from 312th, and Djibouti, which saw a significant drop from 26th to 379th. Berbera's success is largely due to DP World's takeover in 2017, leading to a 35% increase in cargo volumes and a 300% rise in vessel productivity. New digital systems and sustainable practices have also reduced vessel waiting times from days to hours.

The Kenya Ports Authority (KPA) notes improvements at Mombasa, with the turnaround time for container vessels dropping from three days in 2022 to two days in 2023. Container dwell time also reduced from 3.9 to 3.5 days, and ship waiting time for containerized vessels fell to 0.2 days.

https://shorturl.at/E3wPE

#Mombasa edges past rivals in port efficiency, but #Berbera steals the show

Mombasa port in #Kenya has secured a narrow victory over its East African competitors, #Djibouti and Dar es Salaam, according to the #World_Bank's latest Container Port Performance Index (CPPI) 2023. The ranking is based on factors like ship delays and non-tariff barriers.

Djibouti's port, once considered a regional leader, suffered a dramatic decline due to increasing business bottlenecks. It plummeted from 26th position in 2022 to a lowly 379th in 2023. #Dar_es_Salaam also saw a significant drop, falling 55 places to 367th.

However, Mombasa's moment of triumph is tempered by the continued rise of Berbera port in #Somaliland. While Mombasa dropped two spots to 328th globally, Berbera surged an impressive 38 positions to 106th, solidifying its position as a major player in regional cargo handling efficiency.

https://www.theeastafrican.co.ke/tea/business/how-mombasa-beat-djibouti-dar-in-new-port-ranking-4666100

#World_Bank debars Ernst & Young #Kenya for conflict of interest, fraud in Somali projects

The World Bank Group has debarred Kenya-based Ernst & Young LLP (#EY) for two and a half years due to the firm's failure to disclose conflicts of interest and involvement in fraudulent and corrupt practices while implementing two projects in #Somalia.

The debarment pertains to the Somali Core Economic Institutions and Opportunities Programme (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II) in Somalia.

SCORE was designed to enhance the enabling environment for private and financial sector development, aiming to stimulate private investment and job creation. Meanwhile, PFM II focused on establishing and strengthening systems for domestic revenue mobilization, expenditure control, and accountability within the Federal Government of Somalia, #Puntland State of Somalia, and #Somaliland State.

https://www.standardmedia.co.ke/business/business/article/2001498149/world-bank-debars-kenya-based-big-four-audit-firm-ey-over-fraud

#NewsAlert: #World_Bank provides $1B grant, $500M concessional credit for #Ethiopia

"While strengthening the financial sector, expanding trade options, and improving fiscal transparency, this engagement will also boost protections for poor and vulnerable households during periods of economic change. It consists of a $1 billion grant and $500 million concessional credit from the International Development Association (IDA)," the World Bank said. https://addisstandard.com/?p=45076