ETHIOPIA: Tigray Interim Administration Term Extension & more – 3rd April 2025

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 3rd of April twenty twenty-five. A quick summary of what's going down in Ethiopia.

Let’s begin this episode with news from the Tigray region, which is in political turmoil. The federal government has officially extended the term of the region’s interim administration after the House of Peoples’ Representatives voted on Tuesday the 1st to amend a proclamation. This amendment allows the House of Federation to extend the interim administration’s term. The House will also be able to give another extension if necessary.

However, some members of parliament are skeptical because of the rift between members of the Tigray People’s Liberation Front (or TPLF), the region’s predominant party. They said that the TPLF is still derailing the region’s peace, asking the Minister of Justice, who was present during the House’s session, what the federal government’s plans were. The Minister said that the federal government would continue working to bring peace to the region.

Tigray’s neighbor to the south, the Amhara region, is also facing political unrest with federal forces and the popular youth movement Fano, engaging in violent conflicts for over a year. Because of the region’s instability, its education bureau said that over four and a half million children are not attending school. Over three thousand schools across the region are currently closed.

What’s worse is that teachers are being persecuted, harassed and even murdered, according to the region’s education bureau deputy head, probably because of suspected political affiliations, anger, and hatred. Aid has also been disrupted, with reports saying about six million in the region need food assistance.

Shifting gears, The National Bank of Ethiopia announced on Monday the 31st of March that it is going to double down on its foreign currency auction initiative. The Bank held auctions two times after the government decided in July last year that market forces should determine foreign exchange rates. If you’ve been following, you’ll recall that the latest of these auctions was held only a few weeks ago.

Mamo Mihretu, the Bank’s governor, said in a televised address that the Bank will continue to hold these auctions on a rolling basis, about every two weeks, at least until the end of the current budget year. He also said the policy changes have resolved the country’s chronic shortage of foreign currency, with its foreign currency reserve growing by two hundred percent since July last year.

The Bank was in the news again as it unveiled a new directive that regulates foreign banks’ entry into the country’s market. According to the directive, foreign banks will have four gateways to entry; they can either establish a subsidiary or open a branch, both of which require the banks to deposit a minimum of forty million US dollars in paid-up capital. They can also enter by opening a representative office, or buying shares from existing banks, capped at forty-nine percent, with strategic investors limited to forty percent.

Ethiopia wants foreign banks to invest in the country and has been overhauling its legal framework accordingly. The governor of the National Bank has previously said that the nation will only allow banks from countries on good terms with Ethiopia to operate in the country.

In more finance-related news, the government keeps trying to expand the tax base. According to a regulation to implement a new value-added tax (or VAT) proclamation, employers will now have to pay the VAT on discounted or free goods and services they provide to their employees.

The government is also heavily expanding its tax base in the digital world. Now, buyers of paid apps, ebooks, films, and paid subscribers to podcasts, newspapers, blogs, journals, among others, will have to pay the VAT. Ride-sharing platforms will also have to pay VAT.

A controversy surrounding a broadcast from the TV channel Ethiopian Broadcasting Service has escalated significantly over the past week, leading to five people being arrested, including the company’s CEO. The state brought terrorism charges against them. Here’s what happened: The channel transmitted a segment where a woman said that she had been abducted and raped when she was a student at the Dembi Dolo University, four years ago, in the Oromia region, in south-western Ethiopia. The story left many heartbroken, with it making the rounds of social media.

But a day or two later, the government began alleging that the story was completely fake. The Federal Police started an investigation and said it found that the broadcast was intentionally designed to create a rift among different ethnic groups (including the ones from the Amhara and Oromia regions) and that some of the company’s employees had links with foreign anti-peace forces.

On Monday the 31st, the Federal High Court denied the detainees bail.

In more controversies, Addis Ababa University is currently trying to transition to an autonomous institution, free from government influence. As part of the transition, the University’s senior leadership has decided to merge programs and education centers.

The head and neck surgery department, the African and Oriental Studies department, and the College of Development Studies are among the departments that will no longer stand alone and will become part of other departments.

However, some alumni and students are not happy with the way the university has gone about this, saying that the people making these decisions have conflicts of interest and are not experienced, impartial, or experts on the programs that will be merged. They also said that some of the members of the team implementing the mergers are not even members of a department.

On a somewhat related note, the Ministry of Education has revealed that starting from the twenty twenty-six-twenty twenty-seven academic year, university students will be required to teach and serve their community in their senior year, before they’re allowed to graduate.

Berhanu Nega, the Minister of Education, announced this when he was presenting a study to the House Committee on Human Resource Development on why university entrance exam candidates have scored very low over these past few years. He said one of the reasons was the teachers’ lack of competence and motivation. He also mentioned that there’s a significant shortage of teachers.

To resolve this, his office introduced the Ethiopian University Service, a system that requires senior university students to teach in schools in their communities. The Minister said that aside from benefiting the community, this initiative will also help students gain practical experience.

In other news, Ethiopia’s Federal Police Commissioner General met with a United Arab Emirates (or UAE) delegation that Lieutenant Colonel Abdullah Mohammed of Dubai Police led to discuss criminal investigations. The talks focused on suspects who committed crimes in Dubai and sought refuge in Ethiopia, with both sides emphasizing ongoing extradition efforts. They also explored establishing a joint investigation team and sharing expertise.

Mohammed affirmed Dubai Police’s readiness to host Ethiopian investigators for further collaboration. This follows the country’s twenty twenty-three extradition agreement with the UAE, which aims to facilitate criminal extradition but has faced criticism over potential human rights concerns.

In January, UAE security experts provided specialized training to Ethiopian officers in VIP protection, counterterrorism, and cybercrime. The discussions are part of growing security cooperation between Ethiopia and the UAE.

Going back to the capital for a bit, The Addis Ababa Drivers and Motor Vehicles Authority has announced that starting from Wednesday the 2nd, driver licenses can be renewed at any one of its branch offices.

This is music to residents’ ears as they previously had to go to the Authority’s branch office in the sub-city indicated on their licenses. Now, residents can renew their licenses at offices closest to them.

And to wrap up this edition, Ethiopian Airlines has expanded the list of its cargo destinations with China’s Macau. The Airline dispatched its cargo plane for Macau on Thursday the 3rd.

Ethiopia’s ambassador in China said this development signals the airline’s commitment to expand its cargo network and facilitate global trade. With this addition, the airline’s cargo destinations in China alone have reached ten.

Aaand that’s it for this week! Thank you for joining us!

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