Musings From Abroad

After initial evaluation, IMF raises Ethiopia’s international reserves target

Published

1 month ago

November 6, 2024

In order to make it easier to pay for future hard currency expenses, the International Monetary Fund (IMF) increased Ethiopia’s aim for net international reserves, the Fund announced.

After implementing a number of reforms, including floating its birr currency, the East African country was granted a $3.4 billion, four-year financing program by the IMF in July. Additionally, a new initiative to restart its debt restructuring is underway.

“An increase in near-term target is warranted by Ethiopia’s vulnerabilities and heightened uncertainty around the outlook,” the IMF said in a report published late on Monday.

An overachievement of the August target for net international reserves was caused by increased gold exports and lower-than-expected amounts of hard currency sales by the central bank through auctions, according to the IMF.

According to the Fund, net overseas reserves were $1.3 billion in mid-August, more than twice the $630 million projection.

To help build a buffer for the nation to settle maturing letters of credit for gasoline imports issued before the start of reforms, it increased the end-June 2025 target by $300 million to $400 million.

The IMF stated that although the official and black market rates converged as a result of the birr currency’s launch, market activity increased more slowly than anticipated, resulting in a sustained unmet demand for dollars.

According to the Fund, Ethiopia intends to agree with its bilateral creditors by the end of the year, and then “as soon as is feasible” with its Eurobond investors.

According to bondholders, the government was disregarding the fact that Ethiopia is dealing with a liquidity problem rather than an insolvency one when it suggested a haircut, or decrease in the principal amount, of 18% in a recent investor presentation.

“The authorities are making good faith efforts to agree terms with Eurobond holders,” the IMF said.

Between 2024 and 2029, Ethiopia’s national debt is expected to rise steadily by a total of 58.7 billion USD (+178.09%). The national debt is predicted to reach 91.7 billion USD in 2029, marking a new peak after ten years of continuous growth. Notably, throughout the previous few years, the national debt has been steadily rising.

Musings From Abroad

French army begins Chad pullout

Published

2 days ago

December 10, 2024

Ifeoluwa Dada

Just two weeks after local authorities said they were terminating their defence collaboration, the French army announced that jets deployed in the capital N’Djamena had returned home on Tuesday, marking the beginning of France’s military departure from Chad.

The government of Chad, a crucial Western partner in the war against Islamic jihadists in the area, unexpectedly terminated its defence cooperation treaty with France on November 28, a decision that caught French authorities off guard.

It is still unclear how the evacuation will be executed and if any French forces will remain in the central African country at all, even after the first Mirage aircraft returned to their base in eastern France on Tuesday.

“It marks the beginning of the return of French equipment stationed in N’Djamena,” Army spokesperson Colonel Guillaume Vernet said.

Due to anti-French sentiment and military takeovers in Mali, Burkina Faso, and Niger, France has already withdrawn its troops from those West African nations.

Decades of French military participation in the Sahel area came to an end with the departure from Chad, and more recently, French military operations against Islamist extremists in the region were discontinued.

There are still around 1,000 French soldiers in Chad. Vernet stated that it would still take several weeks for the two nations to establish a schedule for reducing its activities.

Musings From Abroad

Court documents show Meta contractor overlooked Ethiopia rebel threats to moderators

Published

2 days ago

December 10, 2024

Ifeoluwa Dada

New evidence cited by Reuters suggests that a contractor employed by Facebook’s parent company, Meta, overlooked threats against content moderators by Ethiopian rebels during a case contesting the removal of dozens of moderators in Kenya.

Last year, 185 content moderators sued Meta and two contractors for losing their positions with Sama, a Kenyan business that moderated Facebook material, for seeking to form a union.

After Facebook switched contractors, they were barred from applying for the same jobs at Majorel.

Foxglove, a British non-profit helping Ethiopian moderators, submitted court filings on Dec. 4 alleging that Sama ignored their accusations that OLA rebels had targeted them for deleting their videos.

In the petition obtained by Reuters, the moderators said Sama accused them “of creating a false account and manufacturing” the threatening messages before agreeing to a probe and transferring one of the rebels’ officially named moderators to a safe house.

In his statement, Moderator Abdikadir Alio Guyo said that OLA had threatened “content moderators who were constantly pulling down their graphic Facebook Posts.”

“They told us to stop removing their content from Facebook or else we would face dire consequences,” he said, adding that his supervisor dismissed his concerns.
In his declaration, another moderator, Hamza Diba Tubi, stated that OLA sent him a message with the names and addresses of both himself and his coworkers.

“Since I received that threatening message, I have lived in so much fear of even visiting my family members in Ethiopia,” he said.

After peace negotiations in Tanzania in 2023 failed to end a decades-old conflict, the government of Oromiya, Ethiopia’s biggest province, accused OLA rebels of killing “many civilians” in assaults.