🇪🇹EthiopiaEast Africa
Experts advocate for credit lines to address Ethiopia's WASH financing gap
via The Reporter Ethiopia8 min read
Experts gathered in Addis Ababa for the Aqua for All WASH Finance Program highlighted a significant financing shortfall in Ethiopia's water and sanitation WASH sector, estimated at USD 1.14 billion annually. Despite the need for approximately USD 2.2 billion each year to meet WASH targets, only about one in eight Ethiopian banks and microfinance institutions offer dedicated financing for the sector. Hezkel Aynalem, CEO of the program, noted that private sector risk perceptions, policy constraints, and weak project pipelines limit lending, even though repayment rates are high. He emphasized a lack of understanding of the WASH sector among financial institutions, who often perceive no business case for it. Systemic barriers include insufficient data, a shortage of investment-ready projects, and regulatory hurdles. The Aqua for All WASH Finance Program, running from 2024 to 2026, aims to tackle these issues by collaborating with financial institutions to establish dedicated credit lines, de-risk investments, and build a pipeline of finance-ready projects. The program involves technical assistance, standardized WASH financing toolkits, and a revolving credit facility linking banks and microfinance institutions. Early results show microfinance institutions achieving 97 percent repayment rates on WASH loans, demonstrating the sector's viability. Hezkel stressed that private finance is essential, as traditional public funding is insufficient to achieve universal access to WASH servi
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
Mekele 70 Enderta and Wolwalo Adigrat University have advanced to the semi-finals of the 2025/26 Ethiopian Cup, marking their first-ever appearance in the last four of the competition. Mekele 70 Enderta defeated second-division side Boditi Ketema 3–2. Muluken Tesfaye scored first for Boditi, but Fitsum Alemu equalized for Mekele. Goals from Prince Ofori and Bona Ali gave Mekele a 3–1 lead, and despite a late goal from Tewodros Belete for Boditi, Mekele held on. Wolwalo Adigrat University secured their spot by beating record champions Mechal 5–4 in a penalty shootout after a goalless 90 minutes. Wolwalo's Ugandan goalkeeper Joel Mutakubwa was instrumental, saving three Mechal spot kicks. Both Mekele 70 Enderta and Wolwalo Adigrat University are currently battling relegation in the 2025/26 CBE Ethiopian Premier League, and their success in the Ethiopian Cup could be crucial for their league survival efforts.
Must ReadThe Trump administration is reportedly looking to restore US diplomatic relations with Eritrea and lift sanctions, according to Massad Boulos, US senior advisor for Arab and African Affairs. This move is part of Washington's efforts to counter Iranian influence in the Red Sea maritime shipping corridor, especially as Yemen's Iran-allied Houthis threaten to close the Bab Al-Mandeb strait. Egyptian President Abdel Fattah El Sisi is facilitating talks between Eritrea's government and Washington. The US has maintained targeted financial sanctions on Eritrea's ruling PFDJ and other entities since 2021, largely due to Asmara's involvement in the Tigray war. While the UN and EU lifted their embargoes on Eritrea in 2018, a subsequent normalization of relations with Ethiopia did not last. In October 2024, Eritrea, Egypt, and Somalia formed an alliance to bolster regional security and check Ethiopian influence, amidst a dispute between Ethiopia and Somalia over maritime access.
Must ReadThe European Union's Political and Security Committee has approved an additional 75 million euros in support for the African Union's peacekeeping mission in Somalia, the Support and Stabilization Mission in Somalia AUSSOM, through the European Peace Facility EPF. This new funding brings the EU's total support to AU-led missions in Somalia to nearly 2.8 billion euros since 2007. The funds will primarily cover troop allowances for personnel deployed in Somalia, as well as non-lethal equipment and related services. AUSSOM, which replaced ATMIS in January 2025 and is extended through 2026, continues to face a significant funding gap, leading to arrears in payments to Troop Contributing Countries TCCs such as Uganda, Kenya, Ethiopia, and Djibouti. TCCs are expected to deploy up to 11,800 uniformed personnel, including 680 police personnel, to AUSSOM until December 2026. The estimated budget for the year leading up to June 2026 is approximately USD 190 million. Despite donor funding from various sources, the mission's long-term financial situation remains precarious due to its reliance on fragmented, non-sustainable funding, compounded by a resurgence of Al-Shabaab militants. The EU remains the largest direct contributor to successive AU missions in Somalia.
State-run sugar estates under the Ethiopian Sugar Industry Group continue to be affected by security issues, high staff turnover, inadequate wages, and a lack of essential services like banking, telecom, and clean water. These findings were presented to the Public Enterprise Administration Committee by Members of Parliament MPs following their on-site inspections. The Group, which manages over 86,000 hectares of sugarcane plantations with an estimated annual production capacity of 600,000 tons, presented a nine-month performance report to Parliament. MPs highlighted significant problems at the Omo Kuraz factories, located in the South Omo Zone, despite the Group improving productivity and creating nearly 5,000 jobs since taking over from Chinese contractor Genertec Complant. Issues at Omo Kuraz include a failure to provide housing, absence of clean water, lack of road and communication facilities, and difficulties retaining experienced professionals. An inoperable irrigation dam, outdated machinery, lack of banking services, and frequent power interruptions were also cited. The Omo Kuraz estates, built at a cost of USD 341 million, face repayment challenges if sugar production does not increase. The report also noted security concerns and inadequate inconvenience allowances for employees in harsh weather conditions. While the Wonji Sugar Factory nearly met its productivity goals, it still faces issues with salary, incentives, and staff turnover. Similar problems were observed