🛣️ Changing Lanes: New Expressways!

Welcome to the latest edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Here’s what’s coming your way:

• ⚡ BUZZ: Addis Links Up With Friends

• 💼 Birr, Bureaucracy & Bad Decisions: Can You Win The Game?

• 🗝️ The Key Takeaways

Thanks for reading!

BUZZ: Expressways of Ambition?

Financing

Ever got tired of flying out to Dessie via airplane? Trip too fast for you? Seats to comfy for you? Are you too good for checking your bags at the check in counter?

Of course not, don’t be ridiculous, the fastest and easiest way from Addis to Dessie is old reliable ET196. Usually arriving at a quarter to noon.

Dessie is in the north eastern part of the country, situated in the Wollo region, not too far from Kombolcha.

It’s a big city in its own regard but does it deserve its own article on ፍራንክ Digest? (As if you had a choice in the matter…cute)

Dessie is one of the four cities that have been selected for an ambitious project by the Ethiopian Road Administration. Jimma, Nekemte and Debre Markos are the other ones.

The scheme: each city would be connected to the capital Addis through expressways that are estimated to stretch on average 300km.

Now infrastructure is a major hurdle for Ethiopia.

Forget big ventures, even small projects like the renovation of a city street can be daunting with delays, material unavailability, contractor obligation not being met and financing drying up before anything starts.   

These will be common denominators no matter what as construction is notorious for over promising and under delivering. 

But that’s not always the case, look at Skylight Hotel for instance or the CBE tower, or even the Aberhot Library in Arat Kilo. 

The common denominator here: they’re all government subsidized.

Now the true details of these projects are not out in the open but it does show a prevailing pattern, strong and consistent financing is usually available to address any issues or setbacks. 

While strong influence amongst the upper management of the country brings on experienced and qualified partners that can get the job done.

So could these expressways be successful in the same way? Well, for one, they require a lot of feasibility studies as the country is ‘rich’ in mountains and expressways don’t tend to fare too well on steep hills!

Secondly, it will be a logistical nightmare to supply the materials along the way, with hundred of kilometer stretches, it will be challenging for contractors to keep up with different demands as the project progresses.

And thirdly, financing. For this particular endeavor, the government is looking at implementing a PPP or Public-Private Partnership scheme, a sort of hybrid form of financing that marries private sector money and skills with public sector strategic connections.

We talked about this form of partnership before and it looks like it’s here to stay. 

PPP is crucial not only in spreading the risk and reward of each project but it encourages private investment to be readily available for future use cases by fostering a more collaborative environment. 

The Ministry of Finance had claimed that, in 2021, there were 23 PPP projects in the pipeline, which included 8 solar ones.

The expressways will be added to that list given that the Administration just recently sent the proposal over to the Ministry.

What does the future hold then?

Jobs. Lots of them. 

But expect temporary jobs related to the construction of the project. That is employment by contractors, local governments and aid agencies who will participate in the project at different capacities.

For the long term, the Administration hopes that it will boost trade and facilitate the movement of people, bringing about a transfer of knowledge, wealth and assets. 

So if you have a relative in Dessie, tell them to wait for you at their front door instead of the terminal, save them the hassle of driving to the airport 😉 

Key Takeaways

1. Expressways: The Ethiopian Road Administration has submitted a plan to build 4 expressways, all emanating from Addis and connecting Jimma, Nekemte, Debre Markos and Dessie

2. Financing: The Administration is pushing to fund the project through a PPP scheme, where by the risk and reward is transferred over to the private sector

3. Future: The project is slated to bring about temporary and long term employment. By facilitating connectivity, goods and services can be easily exchanged with potential market opportunities giving way to a new era of trade.

ፍራንክ Picks 

🚶🏽 Event: Interest-Free Finance Conference & Awards IIFCA 2025 [Feb 22, 2025]

🗞️ In the news: Birr is in Free Fall vs US Dollar 

♟️ Innovation: Kabba, Ethiopia’s Student-Centric Ride-Sharing Platform

The Great Ethiopian Economy Survival Game

Investing

Welcome to the ultimate challenge: surviving and thriving in Ethiopia’s economy!

Think you’ve got what it takes to navigate inflation, forex shortages, and business hurdles?

Your mission, should you choose to accept it, is to navigate this complex landscape, make savvy financial decisions, and emerge unscathed (and perhaps even prosperous).

Let’s put your skills to the test.

💰 Your Starting Balance: 50,000 birr
📈 Your Goal: Grow your wealth—or keep it steady, at least.
⏳ Difficulty Level: Ethiopia

Each round, you’ll make choices that determine your financial future. Let’s go!

ROUND 1: FOREIGN EXCHANGE HUNGER GAMES

💡 You need to buy something from abroad (a car, machinery, or even just a phone). What do you do?

🔘 A) Go to the bank and apply for official forex.

• The bank tells you to “check back next month.”

• Then next month. Then the next.

• Exchange rates go up! You missed your opportunity.

🔘 B) Find a forex dealer on Telegram and pay the black market rate.

• Success! You get your dollars, but at 148 birr per USD, instead of the official 126 birr.

• Your imported goods now cost more than what you expected.

• Your budget just took a serious hit.

🔘 C) Source products locally instead of importing.

• You pivot to local sources or Ethiopian-made alternatives, avoiding forex issues.

• But finding high-quality suppliers is tricky, and face limitations in product variety.

• You survive. That “new & original” iPhone doesn’t.

💡 Lesson: Forex access isn’t easy in Ethiopia. The black market thrives because official channels don’t match demand.