The Ethiopian federal government will implement a new regulation next month, requiring citizens to contribute small fees to the Ethiopian Disaster Risk Response Fund Office (EDRRFO) through various daily activities, from digital banking services to purchasing flight tickets. Under the leadership of Shiferaw Teklemariam (PhD), the initiative seeks to mobilize disaster relief funds by imposing a five percent fee on digital transactions and one percent on insurance premiums and dividends.
The Ethiopian federal government is set to introduce a new regulation that draws on everyday transactions to finance its disaster-response infrastructure. Under the stewardship of Shiferaw Teklemariam (PhD), the measure will launch next month and direct contributions to the Ethiopian Disaster Risk Response Fund Office (EDRRFO).
The regulation mandates that citizens pay fees into the EDRRFO for a range of services, spanning digital banking to flight ticket purchases. It imposes modest levies on numerous daily activities, including a five percent charge on digital transactions and one percent on insurance premiums and dividends. This approach aims to build disaster relief resources through widespread participation in routine economic interactions.
Described as a far-reaching scheme, the initiative targets bolstering the nation's capacity to handle disasters by tapping into the flow of daily financial activities. While details on implementation remain focused on the specified fees, the policy underscores a strategy to sustain disaster management efforts amid ongoing challenges.