The funds collected will go to a new Ethiopian Disaster Risk Response Fund to pay for projects previously funded by USAID, Ethiopia’s biggest partner for development and humanitarian efforts
Ethiopia’s parliament on Thursday introduced a new tax for all workers as part of measures to fill the financial gap left by the USAID funding pause. The funds collected will go to a new Ethiopian Disaster Risk Response Fund to pay for projects previously funded by USAID, Ethiopia’s biggest partner for development and humanitarian efforts.
Ethiopia is facing recurring conflict in some of its regions including Tigray, which is recovering from a two-year conflict, Amhara and Oromia. The conflicts have left millions of people in need of food aid and healthcare.
The new tax will apply to people employed in both the private and public sectors. A mandatory contribution will also be asked of companies across sectors such as banking and hospitality. The new bill has been forwarded to a parliamentary committee for deliberation on the percentages to be contributed.
Ethiopia with its population of over 125 million people had been the biggest beneficiary of U.S. aid in sub-Saharan Africa, receiving $1.8 billion in the 2023 financial year. In addition to life-saving food, the funds were spent on HIV medications, vaccines, literacy programs and jobs creation, as well as services for 1 million refugees hosted by Ethiopia.
Most of these programs have been stopped. The USAID staffers who oversaw them have been placed on administrative leave and told not to work, as they face the threat of termination.
Call to Strengthen Africa CDC
Prime Ahmed has called on African Union (AU) members to intensify their collective support in elevating the Africa Centres for Disease Control and Prevention (Africa CDC) as a premier public health institution.
Abiy made the remarks in a statement after meeting with Africa CDC Director-General Jean Kaseya on Friday at the headquarters of the AU’s specialised healthcare agency in Addis Ababa, the Ethiopian capital.
The Prime Minister said the Africa CDC’s advanced laboratory facilities and research capabilities play a crucial role in disease prevention and in coordinating continental responses to epidemics and pandemics.
Noting that the East African country is “proud to host the Africa CDC”, Abiy called on African countries to bolster their collective commitments toward advancing the Africa CDC as a premier public health agency.
“It is incumbent upon us to strengthen this institution in collaboration with partners. I call upon fellow African leaders to join efforts in establishing our continental public health agency as a premier institution, fully committed to advancing health across the continent,” he said.
The Africa CDC, which was established in January 2016 by African leaders and officially launched one year later, has gained acclaim for its contribution to bettering public healthcare in Africa. The Chinese-built Africa CDC headquarters in the southern suburb of Addis Ababa, which is regarded as a flagship project in China-Africa public health cooperation, was officially inaugurated in January 2023, Xinhua news agency reported.
In November 2023, the Africa CDC unveiled a China-aided reference laboratory at its headquarters. The agency said the completion of the laboratory marks a milestone in its pursuit of a strong continental public health institution that will support AU members in improving disease diagnosis, surveillance, and outbreak response.
After meeting with the Ethiopian Prime Minister, Kaseya underscored the agency’s resolve to drive sustainable solutions for a healthier Africa.
“At the Africa CDC, we look forward to continuing to work closely with Ethiopia to tackle major health challenges, fortify systems, and drive sustainable solutions for a healthier Africa. Together, we are building resilience and safeguarding the future,” Kaseya said.
As the African continent battles various disease outbreaks and public health challenges, including the ongoing mpox outbreak, the Africa CDC has emerged as a major public health agency supporting public health initiatives on the continent and strengthening Africa’s capacity to detect, prevent, control, and respond quickly and effectively to disease threats.
