By 1978, nightlife in Addis Ababa faced challenges due to the Derg regime's curfews, which banned citizens from the streets after midnight. Despite this, some continued to dance and party through the night. Hailu Mergia was preparing to follow up his successful Tche Belew LP with the Walias Band. While his colleagues recorded cassettes with different vocalists, Mergia sought to create an instrumental-focused recording.

He collaborated with the Dahlak Band at the nearby Ghion Hotel, recording Wede Harer Guzo during the band's afternoon rehearsals over three days. Mergia aimed for a different sound, influenced by the Dahlak Band’s youthful, local audience, compared to the mixed crowd at his Hilton gigs.

The Dahlak Band complemented Mergia’s traditional song selection with their modern approach, and his arrangements replaced vocals with instrumental melodies, creating memorable new flavors from popular songs. Before joining the Walias Band, Mergia hustled around Addis, drawing inspiration from azmari performances to understand which songs resonated with people.

Mergia released Wede Harer Guzo with Sheba Music Shop, and its novel arrangements garnered a positive audience reaction and strong sales. However, the tape has largely been forgotten, with no trace found online.