Print Version Vol 16 No 844

 

EID MUBARAK 

 VOLUM  VOLUME E 17 NO. 844, SUND SUNDAY AY,, JUL JULY Y 3, 2016

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CONTENT MATTERS

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E I G H T ( 8 )   B I R R O N LY

60 43

Number of Water producing companies in the Country.

Number of water producing Companies licensed by the Food, Medicine and Health Care Administration Administration

50   e   n   u    t   r   o    F   y    B   n   o    i    t   a   r    t   s   u    l    l    I

10 Br

4

Average price of bottled water per litre

Number of water producing companies certified by the Ethiopian Conformity Assessment Enterprise

Number of water producing companies who are temporarily banned in 2015 for not using standardised seal

5.6 Litre

< 1 Cent

Per capita consumption of bottled water

10

Price of tap water per litre

 Annual Bottled Water Production (in millioonn hectolitres)

8 6 4

8.3

9.8

8

2

1.3

1.6

2011

2012

7.1

6.7 5.7

6

5.7 2.1

8.2

Gross Value Production ( in millions Br)

  n   t  i  oo   j  e c  o   r   P

3.6

4 2

  i  oo n  t  i   P r o  j   j  ee c

2.5

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0 2010

2013

2014

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2015

2010

2010

2010

2010

2010

BOTTLED WATER CONCERN CONCERNS S Nothing is more vital, more innocuous, innocuo us, more profitable and more risky th than an water – if not extreme temperatures. In some cases the labels do not provide adequate information served right, that is. Multiple concerns surround consumption of bottled water. It is not about the contents. With new varieties increasingly appearing, there is need for public  just the fact of plastic but also uncertainty uncertainty about standards checks and quality assurance education and awareness as the advocated practices of re-use and recycle may be harmful  that can guarantee public health. Neither internat international ional nor national national standards for plastic  to physical health. Organisations Organisations comprising comprising the insti institution tution mandate mandated d to to safeguar safeguard d public public containers of food and water may have been checked despite evidence of the dangers health must ensure that the convenient, popular and profitable product of bottled water lurking behind those attractive labels, especially when the bottles have been exposed to is actually safe for consumption. PLEASE SEE THE FULL FEATURE ON PAGE 2.

ERMIAS T. T. AMELGA BREAKS HIS HI S SILENCE WITH APOLOGY   After two years in exile and a month since his releas e on bail from custod y, E rmias T.Amelga has broken his silenc e. He apolog ised to homebuyers, taking full responsibility for the mishaps at Access Real Estate (ARE). "I may have many excuses, good or bad, and many unexpected events may have contributed, but at the end of t he day, someone has to take responsibility, and I do," reads Ermias’ testimonial letter. This six-page letter was circulated through email to homebuyers and others involved in the process. The letter also tells his version of the story, for the first time, particularly in public fora. The narration includes policy-level obstacles, such as citywide “no work orders” on leased land. PLEASE SEE THE FULL STORY ON PAGE 7. RENT (2014/15)

Dashen (93.6M Br)

BoA (73.6M Br)

Nib (78.05M Br)

United (70.2M Br)

AIB (93.4M Br)

LIB (32.9M Br)

BIB (38.2M Br)

 

EDITORIAL

Content Matters

Established in M ay 2 0 0 0 .

Volume 17, Number 844 Sunday, July 3, 2016 Fortune is a weekly business newspaper published and distributed

Almost as if hedging its bets, government has three contending entities in the race for establishing industrial parks - the Industrial Parks Development Corporation, the Ministry of Industry and Metals & Engineering Corporation. Despite the huge costs involved in prioritising industrialisation, there is no coordination, inadequate communication and competition between them. Rather than being enabler and operator too, government should limit its role to legislation, creating an enabling environment for private sector participation, providing infrastructure and incentives. Experimentation seems wasteful.

by Independent News & Media Plc. with the Ministry of Trade and Industry

registered by the Ministry of Trade and Industry under Registration Number 020/2/2349/97.

 MANAGING EDITOR  Tamrat G. Giorgis [email protected]

EDITOR-IN-CHIEF Samrawit Tassew [email protected]

AGENDA

OPINION

Cognitive computing refers to developments in artificial intelligence, with computers being built to learn from their experiences. This means increased engagement between people and machines in a world of connectivity known as the Internet of Things. Big data can now be used to revolutionise industry and all is inspired by the human brain, which performs roughly 10,000 times better than the best machines. By adopting some characteristics of the human brain, computers can become more compact, efficient, and powerful.

xx  Page Page 30 32

Fortune is a registered newspaper under Licence Number 667/98. Independent News & Media Plc is

FORTUNE

Public Health Concerns in Booming Bottled Bottled W Water ater Sector  Over the past few years the number of companies involved in the bottled water industry has started to balloon.  Although thi  Although thiss ini initial tial growth perio period d coi coincide ncided d wit with h som somee wel welll doc document umented ed pr procedu ocedures res ffor or ch checkin eckingg stan standards dards,, suc such h  processes  proce sses are n not ot sti still ll be being ing co conduct nducted ed in intense tensely ly en enough. ough. This inclu includes des th thee prev prevalenc alencee of unce uncertified rtified brands on th thee market, bringing with it concerns over public health, DAWIT ENDESHAW FORTUNE STAFF WRITER reports.

Woreda 08, House Number 897

DEPUTY EDITOR-IN-CHIEF Getachew T. Alemu [email protected] Woreda 04, House Number 1253

COPY EDITOR Ijahnya Christian [email protected]

RESEARCH EDITOR Samson Berhane [email protected]

REPORTER Dawit Endeshaw [email protected] Nardos Yoseph [email protected] Tesfa Mogessie

   e     l    i    F

[email protected]

   e    n    u    t    r    o    F   :    o    t    o     h    P

PHOTOGRAPHER Geremew Tigabu

Bottled water testing laboratories inside Ethiopian Conformity Assessment Enterprise.

[email protected]

COLUMNIST   Girma Feyissa [email protected]

CARTOONIST  Henok Demessie [email protected]

CREATIVE ARTS EDITOR Ashenafi Chekol [email protected]

Exclusive Advertising Agent

Commercial Information Agency Plc [email protected] [email protected] Tel: 251-11-416-3020 0911448026 / 0930012385 / 0911216259  Fax: 251-11-416-3039 PO Box: 259, Code 1110 Addis Abeba, Ethiopia Sierra Leone Street (Debre Zeit Road) Next to Global Hotel, Kirkos District, Kebele 03 House No. 542 Tegene Building, 7th Floor. Email: [email protected] [email protected]

 W 

ith the changing lifestyle of Ethiopia’s urban population, the use of treated and bottled water has been increasing exponentially. The number of factories involved in the

mineral water is also enormous. It was in the early 1990's that Ethiopia first got its own bottled water, when the local  Apex Bottling Company introduced the iconic "Highland Spring Water".  Any bran d of bot tled wat er has in fact continued to be known as simply ‘highland’ until very recently. Now, after almost a decade of growth, it is not so uncommon to see multiple alternatives in Addis Abeba. Other cities too have their own brands, bottled from nearby sources.

INDUSTRIAL PARK 

Though it is difficult to clearly identify She never said what gave her the and competitive points among those the most reliable data, different guarantee over the quality of plastic in the sector. Despite this, an ever agencies suggest that anything from bottled waters. She simply trusts increasing number of companies are 26 to 60 brands have now entered t he that they must have passed through being registered in the sector. sector. market. Up until 2013, the number rigorous standards checks and periodic Globally, the bottled water sector is had reached 53, and if the same assessments. progression continues it will continue The quality assurance and certification dollars, reportedaccording to be worth 157.3 billion to Transparency to grow by 13pc annually, reaching processes have not, however, proved so Market Research. Reports compiled by around 90 by 2020. The number of smooth or coordinated. the Ethiopian Central Statistics Agency consumers too has escalated over the years, to a point where some have There is no point where they can indicated that 60 companies have a stopped drinking tap water altogether. get information on the - pros and registered growth in the value of the product of 5.7 million Br a year year.. “Me and other adults in the family can cons of the product. Most consumers questioned do not even look closely at  When one talks about these bottle d drink tap water, but not my children,” said a mother of twin boys, who just the marks and digits used to indicate  waters , the risk to publi c healt h is always a source of controversy. controversy. Several turned four last month. “I stopped quality and certification. relying on the quality of tap water after This brings about a hovering risk scientific studies elaborated on the I saw brownish water flowing after days  wit h regar d to publ ic safe ty, whil e pros and cons of both the chemical  without supply.” also instilling a lack of assurance composition and packaging.

COURT

ELECTRIC POWER

 VIEWPOINTT  VIEWPOIN

VIEW FROM ARADA ARADA

Just a year after a 246 million dollar deal was signed between the Industrial Parks Development Corporation (IPDC) and the China Civil Engineering Corporation (CCECC) to construct the Hawassa Industrial Park, the much

The one-billion-birr money laundering and tax evasion case involving 17 suspects - including five Indians and six Sri Lankans, as well as one Ethiopian-registered and two Dubai-registered

Ethiopian Electric Power (EEP) is set to erect two hydroelectric dams on the GenaleDawa and Dabus rivers. Upon completion, they will have a 672mw combined energy generation capacity.

The Brexit vote was a triple protest: against surging immigration, London bankers, and dysfunctional EU institutions. Its global ramifications reveal the influence of the disaffected working class.

 After 43 ye ars o f membership, the shocking decision by Britain to leave the European Union raises pertinent questions. Do voters want Great Britain to again be the

anticipated July 3, 2016 inauguration of the ultramodern, eco-Industrial Park has been postponed for 10 days more. The decision came as late as Thursday June 30. Page 5

companies - has been moved on to the next stage. On June 30, 2016, the court determined that all but one of the suspects must be tried. Page96 Page

This will be a sizeable contribution to the existing 5,000mw circulating in the national grid, and come at the cost of close to 1.1 billion birr. Page 8

Restoring a sense of fairness and opportunity involves ending the Syrian war, stopping NATO’s NATO’s expansion, and policing borders to keep illegal migrants out. PPaaggee 2x4x

Empire on which the sun never sets? The Brexit move may also adversely affect Ethiopia which depends on both UK and EU aid.   Page 37

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

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In Ethiopia, bottled water is among the 57 mandatory standards with its own country-specific indicators of standardisation. The law was asserted as early as 2014,  when the Mini stry of Trade (MoT) gave an ultimatum to the bottlers to get the waters certified by the Ethiopian Conformity Assessment Enterprise (ECAE). Back then, there were only six companies that were said to fulfil the

 which are unobjectionable, according to the standard. Labelling is another check that is also a mandatory. The label has to show composition, as well as location of manufacturing and the sources used. Though endowed with the ultimate authority of giving a verdict on the safety of a product, FMHACA never had the full capacity to conduct the inspection on its own.

quality climbedstandards. to 50. Now this figure has  At the Ethi opian Stand ards Agenc y, there are at least four standards directly associated with water bottling - packaging and labelling, specification of bottled drinking water and standards on plastic materials for food contact use. There is a lack of integration among this dedicated offices, said Woinshet Hailemariam, Quality, Food Safety & Production director at Moha – introduction to Moha. The Ministry of Trade gave licences after ensuring that the bottlers obtain a quality performance certificate from the Food Medicine & Healthcare  Admi nistr atio n & Cont rol Auth ority (FMHACA).  Just a few weeks ago, the Ethiopian Standards Agency, which is mandated

Samples are sent to Europe, which is particularly important for pesticide remnants checks. “We have not been able to do pesticide tests for a while now, and samples are let free on the market without the proper certification,” said an expert,    e on grounds of anonymity.     l    i    F    e    n He only has his strong hope to rely    u    t    r    o on, since pesticide remnants have not    F   :    o    t    o been a major issue in quality check     h    P processes. Plastic bottles are seen packed for recycling process. The shortage on Forex has hit the and, in the case of any defects, enforces entering the bottled water sector must major preconditions required to earn mandatory quality assurance of bottled have a certificate from the FMHACA. a certificate of competence. corrective measures.  waters too.  After this, they can get the licence from In this respect, the storage room must Based on its assessment, the Agency “In order to be sure and decide, they reported that there still uncertified the MoT. The Ministry thereafter has be constructed from stone, brick or must have assessed the way the bottlers to impose the mandatory standards similar heat inhibiting materials, and be treat the waters,” said Tsigreda Assefa, bottled waters on the market. checks, before permitting the bottler constructed in such a way that it does a researcher on water and environment Bella Water, located in Sebeta town, is to enter the market. not compromise the safety and quality at the Ethiopian Public Health Institute now under investigation by the ECAE The Authority checks that the business of products (EPHI). “Such substance if they mix for selling its bottled water without a quality assurance certificate from storage The –FMHACA is about production entity hasroom, an adequate and appropriate water will cause a long term washable walls and line fitness and safe the storage - while  with healththeproblem on end users.” the Enterprise, according to a quality floors in the storage room, adequate the conformity assessment is about She too admitted the gap in certifying expert at the ECAE. lighting and ventilation, availability the composition of the water and its The ideal scenario, in this context, is of technical personnel, as well as the acceptable standards. They check the (Continued on PAGE 65) that any of business entity interested in nature of the product. These are the odour, taste and colour, the results of

to set FMHACA, the standards, its finger at the statingpointed that it had failed to stop uncertified bottled water from entering the market. The FMHACA is a regulatory body that controls and looks into the safety of these products  A

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

Hawassa Industrial Park's Inauguration on Ice for 10 More Days  The date may have changed but given the significance of Hawassa Industrial  Park in the wider scheme of things, op optimism timism prevails



 MIKIYAS TESFAYE  By  By MIKIYAS FORTUNE STAFF WRITER  Just a year after a 246 million dollar deal was signed between the Industrial Parks Development Corporation (IPDC) and the China Civil Engineering Corporation (CCECC) to

construct the Hawassa Industrial Park, the much anticipated July ... even an 3, 2016 inauguration of the international ultra-modern, eco-Industrial Park has been postponed for 10 contractor with days more. The decision came as remarkable late as Thursday June 30. capacity, may The presence of top ranking officials, including Prime struggle to complete a project of this Minister Hailemariam Desalegn and international personalities magnitude on time.  wa s hi gh ly an ti ci pa te d to participate in the milestone event. decorating high military brass Players close to preparations for graduated from staff college. the inauguration quipped that the day could be marked as the  An alternative reason proffered 'eruption of Ethiopia's industrial  was tha t the Reg io nal Sta te and the governing party of the revolution'. Prime Minister Hailemariam Region insisted that the Park Desalegn is expected to grace could not be inaugurated while the inauguration proceedings on construction was ongoing,  July 13, 2016, according to the according to sources who prefer to remain unnamed. senior who also added that theexecutive, postponement was due The fist phase of the project to attempts to accommodate  which covers 100ha of the total the PM’s schedule with the development area of 300ha, inauguration,  was origi nally plann ed to be The prime Minister was busy christened within nine months.  A

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Upon completion, the park is expected to create 50,000 job opportunities and generate a lucrative one billion dollars in a  year or a year year and a half. Owing to its keen consideration of environmental sustainability and its comprehension of energy and water conservation principles, the Park's design includes a high standard waste  wat er tre atm ent syst em and use of renewable clean energy. The Park will have 35 factory sheds, as well as 19 buildings for exhibitions, canteens and dormitories. D u b b e d t h e mo d e l f o r development of other industrial parks in the country, a lot rides on the successful construction of the Hawassa Industrial Park,  withi n a reasonab le amount of time. The Industrial Parks Corporation’s development projects include parks in the pipeline for Meqelle, Kombolcha, Adama, Bahir Dar and Jimma. These cities should take note of the intricacies of constructing an industrial park,  which is more than just erec erecting ting sheds. Successful completion of (Continued on PAGE 17)

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Newayekirstos Gebreab Gets Japan's Highest Civilian Award  The Gove rnment o f Japan has an nounced the fore ign reci pients o f its 2016 Imperial Decoration. Among them is Newaye Kirstos, Economic Advisor to Prime Minister.  The Embassy disc losed that the Order of the Rising Sun, Gold and Silver Star, bestowed upon Newayekirstos for his contribution to further strengthening economic relations between Japan and Ethiopia.  The Japa nese hono urs syst em orig inat ed in the 1870 s, afte r the Meji Revolution and is modeled on the European honours system. The first Order,  the Imperial Or der of Meji was es tablished i n 1875 and later ren amed Order of the Rising Sun.  The dec oration c eremony wi ll be he ld on Ju ly 5, 201 6, in th e presen ce of mi nisters, ambassad ors, and other high-level government officials. Newaye Kirstos has contributed to strengthened industrial relationships relationships between the two countries and the recent policy dialogue concerning industrial development. He has been Economic Advisor  to the P rime Mini ster's Of fice sin ce it was occupied by the la te Prime Minister, Meles Zenawi. N E W S

PAGE-6 FORTUNE VOL . 17 No. 844 J ULY . 3 , 2016

Wedding Windfall

ERA to Build 130km Adama-Awash Expressway 

   E    R    O    M The Ethiopian Roads Authority (ERA) is set to begin the construction of a 130Km    W expressway linking Adama and Awash, an extension project of the Addis Abeba-Adama    O    N Expressway that cost 12 billion Br. Preliminary studies show that the road could    K    : consume 100 million Br per kilometre.    S    S    E    L  The road is part of the larger Adama-Dire Dewa Expressway project, which was    D conceived taking into consideration the high rate of congestion witnessed on the    A    E road to Djibouti.    R

 According to ERA, the Akaki-Bishoftu road corridor is the most highly congested  with 15,000 cars per day, followed by the Addis Abeba–Jimma corridor with 5,200  vehicles per day. Corridors to Debre Debre Markos, Ambo, Alemgena and Debre Birhan are also identified as highly congested roads with respective traffic flows of 3,800, 3,600, 3,400 and 1,900 vehicles per day. ERA is currently constructing a 218Km expressway project from Modjo to Hawassa.  Asphalt road coverage of the country has reached 109,000Km, with with spending over the past 18 years amounting to 218 billion Br. The road sector has also been given chief priority in the next fiscal year with the government budgeting around 24 billion Br.

 All over over the the world, world, weddings weddings are big big money spinne spinners rs for  those invol involved ved in the industry industry,, and Ethiopi Ethiopiaa is no no different. different. One key element of all weddings, and Ethiopian weddings, in particular, is music. With the end of the Orthodox Christian Lenten fast signalling a surge in festivities, the demand for DJs and sound systems is on the rise.

Page 12

Billion Birr Money Laundering Case Finds Seven Guilty in Absentia   After two years, seven were found guilty, one released a and nd nine are yet to present th their eir defence case to the court 

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 By SAMRAWIT  By SAMRAWIT TASSEW  FORTUNE STAFF WRITER  The one-billion-birr money laundering and tax evasion case involving 17 suspects - including five Indians and six Sri Lankans, as well as one Ethiopianregistered and two Dubai-registered companies - has been moved on to the next stage. On June 30, 2016, the third criminal bench of High Court determined that all but one of the suspects must be tried.  Among the sixteen charged individuals, seven were convicted as guilty in absentia,  without defence. The remaining nine suspects under arrest will present their defence witnesses in October. October. The Four Siri Lankans and one Ethiopian suspect will remain in prison, as the crime committed can carry a custodial sentence of more than 12 years. The legal counsellors of the defendants

requires much more time to compile and come prepared than fifteen days.” The case has been in the public sphere for a long time now. Indeed, it is two  years since the defendants fell under the police’s watchful eyes, as well as across various offices, including the Prosecutors of the Ministry of Justice and Prosecutors of the Revenue and Customs authority.  Afte r a ser ies of inv est iga tion s and subsequent closures, it was two years back, in September 2014, that the ongoing file was opened by the Ministry of Justice on the grounds of money laundering and Illegal trading.  A large pile of document s, includin g money transfers from Ethiopia to Djibouti, and then to Dubai, involving companies not under the suspects’ control, are among the many pieces of evidence produced.

 were given the option to present the “The SDC Berbera Free Zone and  witnesses in fifteen days, right before Damko Logistics are next in the line, to as we look to finalise the investigation,” the courts close for session.  Ale man te Agi dew, Dep uty Ass ist ant “Our documents and witnesses are many in number,” Molalegne Mesele,  Attorney General leading the case, said. one of the five defence lawyers present He went on to further explain the gap at the hearing, informed  Fortune. “It between some of the pieces of evidence

 It is two years since the defendants came under police’s watchful eyes. and the suspects’ list. “We have had a strong investigative team, including experts from the INSA,” he informed.

The general claim of the defence was the manufacturing with the objective ofsector, assembling the that Ashrafe Awel and Okapi Impex specific Plc, as an Ethiopian and Ethiopian- three-wheeled  Bajaj  vehicles.   vehicles. registered business, are not prohibited  After two years though , the busine ss from entering into any sector, including closed down declaring bankruptcy. retail and wholesale, upon importing. It was this initial business that the They were charged with engaging Prosecutor’s charge connected to the in an investment activity that was activity and followed up. not permitted for foreign investors. Monish Kumar is the CEO of the two They were importing the small, three- Dubai-registered businesses listed on  wheel ed vehic le, known as  Bajaj   in the suspects’ list - Dubai Auto Gallery Ethiopia, using the Ethiopian company LLC and Auto-World International FZC. as cover. This was without having a His two sons, Kumar M. Lakhani and business license in Ethiopia. Some of  Vishal Kumar Lakhani, are among those the employees used false employment found guilty. contracts of Okapi Impex Plc and the others were in the country on tourist The 3rd Bench of the Federal High  visas. The latter makes them ineligib le Court read the prosecutor witnesses for employment and renders their account for more than an hour on trading a criminal act, the charge stated. Thursday, June 30.  Ashr ef Awel, owner of Okapi Impex The Bench went directly to the verdict, Plc, was accused of giving cover to the  without reading its judicial reasoning of 14 defendants by pretending that they how it reached its decision.

his employees, when he knew full Presiding Judge Sheleme Kelemu said The defence lawyers, however, objected  were  well that they were employees of the two that the penalty for those found guilty the charge on a number of counts. unlicensed foreign companies.  would be left until the Bench passes These included the lack of clarity and Monish Kumar, which the charge its final verdict on the case in general. particularities on the charge, as well claims to be the mastermind behind The law prescribes a maximum of 25 as the lack of jurisdiction the Ministry the actions, came to Ethiopia in 2007.  years for money laund ering and 15 possesses over tax-related issues. He secured an investment license for  years for illega l trading.

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

Ermias T. Amelga breaks his silence with apology    In the six-page grovelling letter, Ermias firmly states his desire to still still be involved with Access Real Estate



individuals”, he calls them in opting to follow from a distance. his letter. Col. Abraha Alemayehu, "This is a trojan horse, aimed the current CEO of ARE, is to divide different interest and apparently behind the whole shift blame,” a homebuyer who mess, with failures that led to received the letter commented. Ermias’ arrest, which he called  While anothe r believ ed that unfortunate. A homebuyers’ this letter came at the right association chairman is also moment. identified as an accomplice in “The board and the present the entanglement of ARE. structure has done nothing Homebuyers seem to stand except actively placing the on different sides, with some blame on Ermias,” another member of the homebuyers’ association told Fortune. “If Ermias says he is ready, r eady, then it’s time to give him the chance.” In the letter, Ermias stated that “My personal involvement will be necessary for any solution - and I thus remain prepared and willing to make all the  He is trying to required sacrifice to correct complicated past mistakes”. things instead of Ermias claimed that he had becoming a part of been close to concluding a deal  with a Chinese company, but

 By DAWIT  By DAWIT ENDESHAW  FORTUNE STAFF WRITER   After two years in exile and a month since his release on bail from custody, Ermias T.Amelga has broken his silence. He apologised to homebuyers, taking full responsibility for the mishaps at Access Real Estate (ARE). "I may have many excuses, good or bad, and many unexpected events may have contributed, but at the end of the day, someone has to take responsibility,, and I do," reads responsibility Ermias’ testimonial letter. This six-page letter was circulated through email to homebuyers and others involved in the process. The letter also tells his version of the story, for the first time, particularly in public fora. The narration includes policy-level obstacles, such as citywide “no  work orders” on leased land. The bigger part, however, comes in the pointing of fingers at specific individuals and groups – “a small group of selfish and unscrupulous  A

the solution.

that it had failed to materialise He focuses his blame at Abraha,  whose appointment appointment as the CEO (Continued on PAGE 17) D

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

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EEP kicks off Two Hydropower Projects Worth Over a 1b Br    The construction of the two projects, which have had their feasibility studies completed, are expected to be begin in 2017 

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 By  By TESFA  TESFA MOGESSIE FORTUNE STAFF WRITER

Ethiopian Power (EEP) is set to erect twoElectric hydro-electric dams on the Genale-Dawa and Dabus rivers. Upon completion, they will have a 672mw combined energy generation capacity. This will be a sizeable contribution to the existing 5,000mw circulating in the national grid, and come at the cost of close to 1.1 billion birr. For the Genale-Dawa River, this is not the first dam. With a total project cost of 451 million birr secured from the Chinese Exim bank, 80pc of the Genale Dawa III dam project is now completed. The new Genale Dawa dam, Genale Dawa  VI, is planned to generate generate 248mw, 248mw, while the remaining 424mw will be generated from the Dabus river - a north-flowing tributary of the Abay River in southwestern Ethiopia. "The projects will be completed within four years, beginning in 2017," said Miskir Negash, EEP communications director. For that selection of contractors has started.  At this point evaluation of pre-qualified pre-qualified construction companies is nearly finalized. Genale-Dawa, a perennial 858km long river, extends across Ethiopia and Somalia, with approximately half of its total length running through the mountainous typology in Bale. Following the Abay and Wabi Shebele rivers, Genale Dawa has the third largest catchment area, 74kmsq, with an annual discharge of six billion cubic metres. It has an estimated hydro-power potential of 9,300gwh a  year  year,, aand nd is expecte expectedd ttoo co contribu ntribute te around around 5.8pc of the total estimated potential of the country. The Genale-Dawa project will be constructed as an Asphalt Core Rock Fill Dam (ACCRAD), with a maximum dam height of 60m, crest length of 650m, spillway with side channel, and 16.5km of tunnels and underground powerhouse.  As to the el electromech ectromechanical anical works, it will will be designed to have two vertical Francis Turbiness of 125.4mw each. Application for Turbine

prequalified bidders was made available in mid-May, with a deadline of May 18, 2016. Included in the design is a 400kv, 75km long, transmission line. This will extend from the Genale-Dawa VI to the nearest substation at Genale-Dawa III, where the generated power will be channelled to the grid. The Genale-Dawa III dam will regulate river flows to the downstream GenaleDewa V project, worth 300 million birr, and the Genale-Dawa VI. This helps to ensure that the river is able to produce reliable power. These two new projects will increase the country's energy exports to neighbouring Kenya. The country will earn 76.6 million dollars and 73 million dollars from the Genale-Dawa VI dam, exported to Kenya,

and the Upper Dabus dam, exported to Sudan, respectively. The country will earn this amount of money, according to the Doing Business Index 2016, when the cost of electricity is at five cents a kwh. Last year, the government and China Electric Power Equipment & Technology (CEP) signed an agreement to construct the Ethiopia-Kenya Electric System Interconnection project. This power line will have a total length of 1,045km and a transmission capacity of 500Kv. The Ethiopian side of the project will be 433km long, and extend from Wolayta Sodo through Konso to the border of Kenya. It is being constructed with a loan secured from the African Development Bank (AfDB). When the entire project is completed, Ethiopia will earn an annual export revenue of 500 million dollars,

 while 870,000 Kenyan households will prequalification application will end on  June 30, 2016 reap the benefits.  A 321km Ethio-Sudan Power Systems These two projects are part of the second Interconnection was also inaugurated Growth and Transformation Plan (GTPII), in December 2013, at a total cost of 35  which scheduled to end in 2020.The million dollars. This will export power government failed to materialise a plan of from the Upper Dabus Hydropower generating 32.6 million mwh, up from 7.6 project, with a transmission line capacity million mwh in 2009/2010, by the end of of 100mw. This project is planned to bring the first Growth and Transformation Plan 150 million dollars in foreign currency to (GTPI). There was also a plan to increase access to electricity to 75pc by the year the country on an annual basis. Located in southern western Ethiopia, the 2014/2015, which also fell short, by 20pc. Dabus river has a drainage area of 21,032 In the year 2014/2015, the total electric square kilometres. It is renamed Yabus power generated stood at approximately  when it reaches Sudan. The construction construction 9.5 million mwh, with an average 9.4pc of this dam's first powerhouse, which will increment each year. Out of this figure, produce 97.7mw, includes an ACCRAD 94.7pc was from hydropower, while the  with a height of 62m 62m and crest length length of remaining came from wind and thermal 1,300m. Its 326.3mw second powerhouse sources. This was 29pc of the set target  will incl ude 20m cana l work s. The during the same year.

 Sugar Import Continues with 140,000mt 140,000mt on the W Way  ay     Recent weather phenomena alone cannot explain explain why self-sufficiency in the d domestic omestic market remains elusive

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 By  By DAWIT  DAWIT ENDESHAW  FORTUNE STAFF WRITER  The Ethiopian Sugar Corporation is importing 140,000 metric tonnes of sugar at a cost of 71 million dollars from India, to be transported in three rounds of shipments lasting four months. The purchase has come after the closure of all the sugar factories in the country, following the start of the rainy season. The import represents the latest dent in the already tattered reputation of the Corporation after its persistent failure to keep its repeated promise to meet domestic sugar demand through local production. Stated in the Corporation’s nine-month performance report presented to Parliament, only 44pc of the annul production target of 535,693tn has been achieved. Just four of the Corporation’s operating factories have contributed to this production. Most of its other factories, which are under development, are marred with chronic delays and over

the weather, the fundamental problem the Pte Ltd is expected to satisfy the local expenditure. Despite registering some production Corporation faces pertains to its failure to demand for the time being. The company during the nine months of the current fiscal deliver completed sugar factories, after had supplied 75,000mt of sugar last  year,  year, W Wonji, onji, Fincha Finchaaa an andd Kessem Kessem factories’ factories’ spending billions of birr and missing September, when the Corporation performance was lower than 50pc of deadlines by several years in some cases. bought 200,000mt of sugar. their respective production targets. The Despite already missing a March 2013  Agrocorp , based in Singapor e, has Metehara sugar factory also only achieved deadline and having spent 97pc of its been a consistent supplier of Sugar 51pc of its production goal, highlighting budget, progress at the development in Ethiopia. It is globally recognised the woes the state-controlled sugar industry of Beles I sugar factory is still at a as supplier of commodities such as disappointing 60pc. the country is facing. pulses, rice, oilseed and sugar. The “Two extreme phenomena on the Similarly, the Corporation was supposed company is said to have a presence in same weather spectrum contributed to finalise Kuraz I sugar factory in 2013. 12 countries including a few Eastern to this problem,” Gashaw Aychiluhim, But three years past the deadline and  African countries. Its annual revenue communication head of the Corporation already having spent 94pc of its budget, the exceeds 1.9 billion dollars, according told Fortun  Fortunee. The recurrent drought has Corporation has only 83pc completed to to its website. had a tremendous negative impact on show for its conundrum of a performance. the cultivation of sugar cane on the one Moreover, technical failures and shortage Over the past ten months the Ministry hand, and the major floods due to La- of water in Tendhao sugar factory and of Trade has distributed 404,521tn of Niña resulted in River Awash overflowing limited engagement of its contractor sugar to consumers across the country. its banks and causing unfiltered water to and consultant have contributed to its The distribution usually takes place enter into the factories rendering their underperformance of producing only based on a monthly quota where regions production capacity null, on the other hand. 310tn of sugar. get 40,500tn of sugar at 45-day intervals; Technical problems ensued following the  With 45,000mt  Addis is Abeba Abeba gets11,2 11,200tn 00tnand indu industri stries es 45,000mt of tthe he ssugar ugar already already hhaving aving  Add floods, significantly diminishing outputs. reached the Port of Djibouti, the purchase in beverage and food processing receive Notwithstanding the problems caused by of sugar from Agrocorp International 15,600tn in one month intervals.

Ministry Limits Allowances for Donor Funded Projects   Some pockets will feel the loss but filling this perceived loophole may positively impact beneficiaries

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 By NARDOS  By NARDOS YOSEPH FORTUNE STAFF WRITER 

The Ministry of Finance & Economic Cooperation (MoFEC) has issued a letter limiting the daily subsistence allowance (DSA) for personnel executing development organisations' funded projects. This replaces the project fundbased allowance for all government project division employees and experts of development organisations that take part in projects. However, higher government officials are not getting the same treatment. The fixed payment stipulation sent out to all 29 bilateral and multilateral development organisations including IMF, USAID, UNDP and the African Development Bank includes DSA, transport allowance, community members allowance for training, and hardship allowance.

The new disbursement set the DSA for employees and experts of the funded projects ranges from 210 Br to 300 Br a day, cutting off the large sums given previously as per the budget of the project, leaving the allowances of federal and regional government-appointed officials in the range of 430 Br to over 700 Br. Furthermore, MoFEC set a 20pc - 40pc addition to the hardship allowance (paid to employees for working in hazardous or remote areas) but the catch is that these sites must be among the ones the government identifies as desert areas, in  which employees employees find it difficult to work. The Ministry has also fixed the price of the transport allowance as the price per kilometre set by the Federal Transport  Authorityy whi  Authorit which ch is 0.30 Br pper er kkilometre. ilometre. If the office provides the transportation, transportation, the allowance will be calculated as a litre of oil used per kilometre.

Prior to this limitation of DSA, experts and government employees who work in donor-funded projects received an average of 4,494 Br per diem. While in most stances a civil servant receives a maximum of 400 Br per diem and minimum of 70 Br. Sources in MoFEC explain that the rationale behind this regulation is that administrative and other employee expenditure disbursements are far exceeding the total budget actually set for implementation of the development projects. However, outside of this limit, the Government of Ethiopia has a Proclamation for Charities & Societies that orders all of the organisations to have not less than 70pc of budget allocations reflected in a budget year's expense for the implementation of its purposes. Expenses for administrative activities

that include capacity building, transport, staff salaries and various forms of training must not exceed 30pc. Though the field research and data collection as well as training for target communities of the project are always done by the experts and employees involved in the projects, the limits imposed by the Ministry results in their having lower allowances than the officials  who occasionally occasionally show up iinn meetings.  A working working paper prepared by the African Development Bank's Office of the Chief Economist in February 2014, focused on uses and abuses of per diems in  Africa. The paper states that the reason development organisations compete against one another with higher rates of allowance, is to get public officials  Ahmed Shide, state minister for to commit to specific development Finance and Economic Coperation. priorities.

 

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Bill Proposes No Minimum Capital, Franchise Regulation  The Bill has come after enactment of the same proclamation five years ago to reform the half a century old Commercial Code

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 By  By DAWIT  DAWIT ENDESHAW  FORTUNE STAFF WRITER  Five years after the last major revision to the more than half a century old law governing commercial and business registration and licensing, a new Bill  was tabled in Parliament last week, with intent to improve the ease of starting a new business and doing business in the country.

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 The amendment has come after five years stay of the same proclamation.

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 The   new bill is expected to ease complexity while starting business.

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The latest legislative amendment is part of the government’s drive to make businesses competitive not just locally but also on the global stage, through the creation of an enabling environment in which they can thrive. Government’ss amendment of the existing Government’ Proclamation 986/2010 corresponds  with changing times as well as the need to reform the proclamation’s inherent character.  As such, the amendmen amendmentt is meant ttoo bring simplicity, efficiency and accessibility to commercial registration and business licensing, while it is also intended to clarify ambiguous articles which may have been open to interpretation. The Bill also seeks to prevent the confusion that arises when trade names are used interchangeably  with company names and ttoo include legal provision for modern trade practices such as registration of holding companies, border area trade, franchising and so on.  Among the major amendments amendments proposed by the Bill, and in what can be considered a milestone for the country, is cancellation of the requirement to present minimum  A

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the draft law also outlines provisions for franchises, where a business licence will be issued for agreements made between a franchiser and a franchisee. Last October, the World Bank's Ease of Doing Business report indicates that Ethiopia is still below the line measured across the range of parameters that covers the process involved from getting licences to operating a business. The 2015 report

 Registration and certificates will be issued for  franchise agreements made.

 The   Bill has also introdu introduced ced the extension of the business license renewal period to six month s.

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capital statements in starting a new business. Except for share companies, the draft law proposes that start-ups are no longer required to present documentation attesting they have deposited in a bank account a certain minimum capital when registering a new business. The rationale for the Bill is that this requirement limits those with the skill and ambition to start a business. A recent report by the World Bank puts paid up capital required by Ethiopian regulation as a percentage of income per capita at over 300pc of the regional average. Use ofarea tradeofand company the other major revisionnames in theisBill. Their interchangeable use has caused some mix up in the past. In the proposed revision, the name of the company, by which customers usually identify a S

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business, shall appear on the certificate of commercial registration. Whereas the trade name appears on a separate certificate of the business license. The Bill further introduced the extension of the business licence renewal period to six months starting from July to the end of December, during which period, businesses entitled to incentives are not restricted in accessing their benefits. The draft also proposes that certificates of competence be a requirement only for business sectors that must necessarily provide same and not be required of sectors which do not require s certificate of competence as a prerequisite for issuance of a business licence. In what appears to be a response to the changing times and in what some would argue is an overdue legislative amendment,

179  Ethiopia's Rank in World Bank's  Ease of Doing Business Index

 whic h meas ured doin g busi ness in number of segments ranked Ethiopia 176a out of 189 economies. Kenya stands at 151. This ranking involves assessing eight indices for starting business. Ethiopia's place in comparison to last year has shown a decline by six ranks. For instance, under starting business it has looked into 11 procedural steps that must be taken in order to begin your business such as time, associated cost put in to obtain commercial registration, obtain a business licence and reserve a unique company and trade name. These all take one day each  with an associated associated total cost of 251 Br. Br. In the same report, the World Bank indicated that 85 developing economies in a global context implemented 169 business reforms in 2015, most of them to improve efficiency by reducing cost and complexity. Having similar objectives, Ethiopia's effort to bring these changes is yet to be counted since the reforms are yet to be ratified and enforced. The Bill has been forwarded for review by to the relevant parliamentary standing committee.

 

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Escalating Death Toll In Disputed Squater Demolitions  Despite   the injuries injuries and mortalit mortalities, ies, the district is determined to continue continue with the demolition process process

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 By NARDOS  By NARDOS YOSEPH FORTUNE STAFF WRITER  Homeless squatter demolitions in Wereda 01 of Nifas Silk Lafto District, an area known as Urael, turned deadly on both sides of the conflict on 29  June, 201 6. The aggressive confrontation between the demolition task force and illegal

a mistake and encouraged them to re-build the houses. They also promised to provide replacements to residents that need to vacate the area for development purposes. The wereda   did not give any response to the statement, as it chose instead to mourn the deaths of their staff members, closing

residents, estimated to include 5,000 households, ended with the death of four individuals. The Wereda  demolition task force leader, two deputy inspectors, and one of the squatters. Unaccounted number of others wounded on both sides.  A 25-year-old labourer, Eyesa Ejersa from another side of the Oromia special zone Selale, who lived in the contested zone for the past four years  was the deceased decease d squatt squatter. er. The incident happened when police arrived in the area to help the Demolition Task Force. At this point, people began throwing stones at them  with anger, until the policemen police men and the task force leader died. After this, further personal from the Addis Ababa Police Commission swarmed the area, beating everyone, according to a single

down  until Juneowners 4. Most ofthethewereda squatter home have now retreated from the area,  while some remain with nowhere else to go and no one to turn to. This is the case for the 24-year-old new mother, who gave birth to a baby boy just three days before the demolition. She now lives under a tent made of plastic pieces, with no door. Despite all the violence, the District is continuing to advance the demolition process, moving into another area, Mango, in the same wereda . "As long as it is illegal, it should be demolished," the City Government Deputy Mayor, Abate Sitotaw, told  Fortune shortly after the Weregenu demolition, last month.

Debris from demolished houses at Kersa Kontuma village in Nifassilk Lafto District.

practically implemented in a consistent manner Illegal residents were told to  vacate the area a day before the demolition took place, though the code enforcement law of the city states that three days’ notice must be given. The people state that they  were told that the area is needed

Such violence during the demolition of squatter houses is not a first for the city.

for a French company to construct an abattoir. They added that this was not the first time the wereda  has taken measures against them. Two years ago, demolition began on their squatter houses only to be stopped by the wereda itself. At this time, they were informed that it was

mother,, who was one such victim and mother  was forced visit the local hospital to treat her beaten arms.  "It was just after the policemen died; the police were in shock, hitting everyone in front of them," said a man in his 60s, who was a neighbour of Eyesa, in Block 7. "They struck him suddenly and he couldn't stand.” He went on to explain how they had to  The fourth PSNP will be implemented in 318 districts accross the country to carry his corpse along the back roads, in order to get his body back to his mitigate food insecurity hometown. “We said that he had died of unknown  By  By TESFA  TESFA MOGESSIE Earlier this year, the country received cash or food to eight million chronically causes, because we are afraid of the a loan of 933 million dollars from food insecure people in areas most often FORTUNE STAFF WRITER  police," he informed  Fortune .  WB, which pushed the Bank's loans to hit by drought. The programme also The World Bank (WB) signed a 100 The demolishing task force that went supports scalable response mechanisms, million dollar loan agreement with Ethiopia this fiscal year to a record high to the area included four dozers , Ethiopia to support the latter's fourth of 1.9 billion dollars. sustainable community asset human two exavators and huge number of phase of the Productive Safety Net The Bank's maximum commitment capital investment and capacity demolishing team members,a.k.a Programme (PSNPV) that will reach recorded in 2016 was 1.6 billion which enhancement for crop and livestock  Afrashoch.  Afrashoc h. production to improve the livelihoods to 4.5 million beneficiaries across the previous increasedyear. by 25pc compared to the of farmers. Such violence during the demolition country. In 2012, 970 million of squatter houses is not a first PSNP IV was approved in 2014 with a dollars was recorded as the lowest "The programme is helping helping the country for the city, however. It was only total cost of 2.6 billion dollars secured commitment. Over the past five years, further reduce extreme poverty two months ago that a demolition in the form of a loan from the Bank. The the Bank has committed more than 6.7 and promote shared property by process in Wereda   12 of the Bole three previous PSNP projects - PSNP I billion dollars to more than 10 projects strengthening the resilience of the 2016, the Bank District, in an area called Weregenu,  worth 70 million dollars, PSNP II worth in five years. Until March 2016, poorest households to natural shocks. resulted in similar violence. On this 1.04 billion dollars, PSNP III worth 1.7 had 40 active projects with a commitment The additional financing will help billion dollars. occasion, though no major injuries billion dollars, were launched in 2004,  value of around seven billion ensure that the poorest people in drought  were suffered on the side of the police, 2007 and 2009, respectively, had the aim State Minister for Finance & Economic affected areas continue to receive reliable one resident was reported to have of improving food security of poor people Cooperation, Ahmed Shide and WB’s support from the government through died. This was followed by another in rural areas. The first three phases, Country Director for Ethiopia, Sudan to the next harvest - a period when food situation in Arada District, Woreda concluded in 2006, 2010 and 2015 and South Sudan Carolyn Turk, signed needs are always acute," Turk remarked respectively,, were all financed by WB. 08, which resulted in 15 people being respectively after the signing. the agreement at the Ministry last week. The interest-free loan will be repaid after "The loan will be used to expand access to taken into custody. custody.  PSNP IV is Ethiopia was hit by the worst drought in The incident in Urael happened after 32 years. safety net and disaster risk management  providing regular decades, in which 18 million people failed came just two weeks after a system as well as provide nutrition a heated argument between the task This deal came cash or food to receive immediate food assistance. force and illegal residents, who have 829 million dollar loan deal the country services and income support to food transfer of eight The Bank’s commitment has increased been in the area for f or up to 18 years and signed with the WB for modernisation of insecure families living in rural areas," million poor by 17pc annually amounting to about 1.3 the urban transport system, support for said Ahmed, adding that it was intended claim to have Aerial maps.  people in those billion dollars over the last five years on access to finance for small and medium to scale up PSNP VI supports in response  Arie  Arieal al maps are photog raphs taken areas which are average. The loan the country received enterprises, expansion of electrification to the El Niño-induced drought by safety most often hit by million in rural areas, an Eastern and Southern net transfers to chronically insecure from WB is four times by theneighbouring sum of 405 from Airplane view, who most dollars secured squatters belive gives them a right to  Afr drought. ica Hi ghe r Ed uca ti on Cen tr tree of households. Kenya this year. The Bank approved its be accomodated to the master plan as Excellence, and improving access to first loan to Ethiopia for highway and long as their location does not overlap basic social services and economic This money will be spent for project bank development assistance in 1950. lasting from July to December 2016.  with roads roa ds or gr een areas. are as. opportunities for communities hosting PSNP IV will be implemented in 318 The law on regulation too gives refugees. The life span of these projects The major components of the Safety Net Programme include regular transfer of districts across the country country.. such a room , but never has it been is five years.

Ethiopia, World Bank Sign  $100m Addition for PSNP IV 

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

WEDDING WINDFALL WINDFALL  All over the world, weddings are big money spinners for those involved in the industry, and Ethiopia is no different. One key element of all weddings, and Ethiopian weddings, in particular, is music. With the end of the Orthodox Christian Lenten fast signalling a surge in festivities, the demand for DJs and sound systems is on the rise. In addition to the huge increase in work,  price increments are also witnessed at at this time. With a slow period soon to follow, DJs and sound men work as much as  physically possible to help them them through the rest of the year. year.

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erihun Bekele, in his mid-50s, is a veteran amateur sound man. When he started working in the role for the then Sevens band, it was his emotion and interest that pushed him to get involved. He  worked with the band for eleven years. He did not foresee, however, that he  would f all in love with the prof ession.  At the time he joined, joined , the band was  well-known in Addis Abeba. Tsedanya Gebremarkos and Shiwndagn Haile  were among the founding members of Sevens, which disbanded five years ago. For Zerihun, it was not the money that mattered, but rather the passion he had for music. "Though I was paid only around 50 Br on a monthly basis, I was happy to be associated with the band," he said. Express band was another big musical group that Zerihun joined up with in his role as sound man. Seven years  was enough for him with that outfit ,  which was founded in 1994 by three musicians - Dereje Tefera, Kibret Zekiwos and Feleke Hailu. The band provided backup music for legendary singers, including Theodros Kassahun (Teddy Afro), Dawit Melesse Melesse and Zeritu Kebede.  Af te r ac cu mu la ti ng 18 ye ar s of experience as a sound man, he retired. It was at that he made a business out of his rich experience and exposure.

He ventured into sound system rental for small social events, offering an old sound system for a minimal price. The system includes a microphone, amplifier, speaker and mixer. Zerihun has been leading a pensioner’s life but he still has the energy to work. Slim in stature, with a crisp face and  weari ng a bathr obeobe-like like coat in the rainy weeks of June, he described how he makes a living from his business. “I used to have plenty exposure while  working for two bands and got to know many people,” he said. “The people I knew through this work now call me seeking a sound system.” He charges between 3,000 Br and 4,000 Br for the rental of his equipment. The price is different depending on the length of time the customers wish to keep the system. For dinner or  weddings, he charges 3,000 and adds ad ds an extra charge of 1,000 Br for both dinner and lunch.” If he is present to operate the system at an event, he earns an additional 500 Br. "I prefer to play at weddings to make a larger sum, as well as to enjoy the

 Speakers and microphones displayed in Merkato where shops of this kind are most common.

feast,” added. He alsohesaid that his work is seasonal. In May and June, the system’s rent will be increased by 60 Br to 100 Br. This is because it comes after the dominant Ethiopian Orthodox Church faithful break their 55-day-long Lenten fast.

 

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 With the a dvent of th thee Easter feast, the annual wedding celebrations are rife. In Addis Abeba alone, 144,227 people tied the knot between 2009/2010 and 2013/2014. This figure increased by 85pc in 2014/2015.  Another veteran who may have played at some of these weddings is DJ Dani, who began in the same business 15 years ago. DJ Dani claims to be a pioneer who recruited and coached some of Addis’ leading DJs. He is one of those who started Sergwon Bedeje, which literally translates as ‘wedding by DJ’. In the early years of the 1990s, he frequented clubsinand playing at local weddings hisenjoyed neighbourhood. He said that he used reel cassettes to record songs in the old fashion. That is how he evolved into a businessman, importing and renting out the sound system. China and Dubai are the destinations from which he imports his equipment. Sitting at his fancy office around Bole, he attracts customers with impressive displays of all his equipment. Physically well- built, he is proud that he runs a successful business. “I used to work as a DJ for two years by renting out a sound system,” he explained. “Back then, I earned between 1,500 Br and 2,000 Br for a single occasion.” Now, however, his income in one  year has leapt up to 1.2 milli on Br, he calculates, assuming that he rents out his sound system for at least 10 concerts. He said that he rents out his system for a range of 6,000 Br for weddings and 120,000 Br for concerts. The 6,000Br could be increased to 18,000 Br if he takes a sound crew to support him at the wedding. The transport cost and fee for assistant  workers increases the rent al fee. Like Zerihun, Dj Dani contemplated the advantage of the wedding season. The income Zerihun earns, is, however, proportionally lower than what Dani achieves. “This season gave me a big return,” Dani teased. “We are so busy now.” He went on to explain that the rental price has increased by 20pc this June. The sound system must be serviced,  which is the main task of the sound man, addition adjustingquality. the volume of theinsound andtoensuring “We believe that we give a better b etter service  wit h a dif fer ent cap aci ty of sou nd system, depending on the size of the event,” he said. For weddings, the sound system will have a capacity of 500 watts. He also has 13,000-watt sound system, which is used for concerts and large gatherings. DJ Dani also rents to other sound system operators and Dj Zelalem Fikre Silassie is one his customers. Dj Zelalem rented the smaller sound system for 6,000 Br, after he contacted Dani to use it for weddings that last for five to six hours. He too is busy this season as there are so many weddings demanding his services this season. “When this time has passed, I will be idle,” Zelalem explains. “I this haveperiod, to use the money I collect during so have to work as hard as possible.” The sum he charges for a wedding is between 20,000 Br and 30,000 Br 12,000 Br more than what DJ Dani charges.

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"Mine is a bit more expensive, because of the system rent and the payment for crews," he said.  A co coup uple, le, Hi wan an andd He nok , who had hired Dj Zelalem to play at their  wedding, thought the additional additional exp expense ense  was worth the while . In fact, the y said it topped the list of things they thought should be included to make their  wedding a joyous event. even t. "This is a once in a lifetime opportunity,” opportunity,” said Hiwan. “So, I believe that we should not miss out on it.” The couple was initially simply going to use a flash drive and speaker, but

"We had to enjoy our wedding day at any cost,” Henok said. "And the 20,000 Br we incurred for the rental of the system was, therefore, a sound decision.”  ultimately decided that it would not be possible. "We had to enjoy our wedding day at any cost,” Henok said. "And the 20,000 Br  we incurred for the rental rental of the system  was, therefore, a sound soun d decision.”  Wedding guests, who were not aware of the cost incurred, said that the epic mood of the bride and the groom should

be expressed through music. They from 90 dollars to 11,000 dollars, with believe that to make a wedding joyous, mixers and speakers going up to 11,500 there will, of course, be a cost to incur. dollars and 40,000 dollars respectively. "I enjoy the music aspect of wedding In the year 2014/15, the country ceremonies," said Saba Bezabih, a imported 12 million dollars’ worth of guest at Hiwan and Henok’s wedding. sound systems - up 37 pc compared to "A calm ceremony could not express the previous year. This also represents the excitement.” a four-fold increase from import levels Guests’ enjoyment and adopting to the in 2010. new "Wedding by DJ", pushed prices  Abiy claims that the majority of his sales higher. are to those who run a rental business. Giving testimony to this rise in the price The price he sets for a mixer is 8,000 Br, of sound system rentals is Abiy Legesse,  while microphones and amplifiers fetch owner of Abiy Electronic Shop at Yirga 4,000 Br and 2,500 Br, respectively. Haile commercial building. "Since May, the price for microphones "This month the rental fee is increasing," and amplifiers has increased by 50 Br he said. "I am importing mixers, microphones and amplifiers from and 120 Br, respectively," he added. China," he said without disclosing Beginning his business two years ago  with 200,000 Br in start-up capital, Abiy prices. However, the price tags displayed on has amassed half a million Birr. his range of speakers showed prices of Sound systems and businesses that 10,000 Br to 20,000 Br, with a profit provide other wedding services know margin of approximately 500 Br to 800 the wisdom of taking advantage of the Br, respectively. peakdecrease season.inFrom August oftoweddings January, the number The average price indicated in the the popular Amazon online shopping coincides with a decline in the rental platform in the past month is widely price of sound systems, though there  varied. is a shorter wedding season that takes Microphones can be priced up to place around Timket   (the Epiphany) 10,000 dollars, while stereos cost in January.

 

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Ethiopia on Track to Become  Africa’ss Industrial Powerhouse  Africa’  Ethiopia continues to come to atte attention ntion for its outs outstanding tanding economic economic growth and obvious obvious provisions  for prioritising prioritising industry. Jost Jostein ein Hauge, PhD candi candidate, date, University o off Cambridge a and nd Muhammad Irfan, Irfan,  PhD student, A Political Political Economy of Subsidies Subsidies and Count Countervailing ervailing Measu Measure re in International International Trade and  Development – Issues Issues of Policy Space and and the WTO’s SCM Agreement, Agreement, University of Cambridge, Cambridge, describe describe  positive indicators indicators for the future. future. Ethiopia seems to be attracting the attention of economists interested in  Africa, and for good reason. Except for Rwanda, Ethiopia is the only African country whose economic growth has been consistently high for more than a decade without relying on a natural resource boom. Between 2004 and 2014, per capita growth in Ethiopia was eight per cent per year. This was the highest on the continent during this period, and is impressive by any standard. The growth has been attributed mainly to a construction boom and increased agricultural productivity. productivity. But manufacturing has also been  vital. It has grown at 11pc per year and manufacturing exports increased more than eleven-fold. This was largely thanks to the increasing export earnings of the footwear and apparel industries. The growth represents more than a doubling of manufactured exports’ share in total merchandise exports, which itself more than quintupled during the period. Nevertheless, manufacturing as a share of gross domestic product in Ethiopia remains at five per cent, well

below the African average of 10pc. The country also scores below the  Afr ica n ave rag e on div ers ifi cat ion , export competitiveness, productivity and technological upgrading. Despite this, it is not a long-shot to predict that Ethiopia will catch up  with countries countrie s like China and Vietnam in some low-tech manufacturing industries in the near future. These are industries for which labour costs are very important. And right now  you would be hard pressed to find f ind a country in the world that has cheaper labour than Ethiopia. Even beyond these obvious industries, there are reasons to believe that Ethiopia might be on the right track to catc h up with more advanced economies. The developmental state First is the country’s developmental orientation. In many ways it resembles that of successful catch-up experiences in East Asia, such as Korea and Taiwan, with a relatively “authoritarian corporatist” structure and centralised economic planning. Meles Zenawi, Ethiopia’s recently deceased prime minister who ruled from 1995 to 2012 and whose legacy

 

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The industry grew from a single remains strong in today’s ruling firm in 2000 to about 100 in 2014. political coalition, repeatedly expressed admiration for the East The industry has also created  Asian experie e xperience. nce. He stresse stressedd that indirect jobs through the expansion its success was based on a prudent of horticulture. Related activities, combination of market forces and such as packaging production, cold state intervention. The State not chain logistics and air transport only provided basic infrastructure have all benefited. and services but also a conducive  Wh il e Et hi hiop op ia n fi rm rmss in it ia ll y environment for the private sector. kicked off the floriculture industry industry,, The second reason to be optimistic foreign firms have increased their about Ethiopia’s prospects is the investment. In 2012 they accounted impressive industrial policymaking for 63pc of all firms operating in capability it has accumulated the sector. since the Ethiopian People’s This foreign investment has Revolutionary Democratic Front government came to power in contributed to improved technological development and market 1991. access. The quality of this capability Foreign investors say Ethiopia becomes clear if you read the has become an attractive Growth and Transformation investment location because of Plan covering 2010-2015. natural endowments such as land  Acc  Accordi ordi ng to eco nomi st Keni chi and altitude, cheap labour and Ohno, the Plan is unusual in its government incentives. These brevity, coherence and strategic incentives include tax holidays on direction. Priority manufacturing profits for up to five years, duty industries were designated based free privileges on all capital goods on resource availability, labour and the provision of construction intensity, linkages to agriculture, material. export potential and relatively Subsidised loans have been low technological entry barriers. (CBE) and the Development Bank most of the past 20 years the the prime source of long-term They include apparel and textiles, federal budget has been devoted to investment financing for firms in of Ethiopia (DBE), provide most agro-processing, meat processing, policies that are more “horizontal” the floriculture industry. Almost credit to firms in these industries. leather and leather products, and in nature, like education and two-thirds of firms in the industry Foreign banks are simply not construction. allowed to operate in Ethiopia.  Foreign banks are simply infrastructure. Results so far are have relied on loans from the Supporting institutes have been set impressive. The understanding is that they will Development Bank of Ethiopia. And not allowed to operate up for each industry to coordinate Enrollment primary allowed only when the value chains effectively, for be private the success in Ethiopia ... they will has increasedinfrom belowschools 20pc in of thesebanks, loans,seeing have also started banks have in developed thedomestic capacity example by ensuring efficient supply be allowed in only when the early 1990s to about 94pc in lending to the industry industry.. to compete. of inputs to manufacturers and to domestic banks have 2012. The number of universities Sectors destined for future success assist firms with technological Education and infrastructure developed the capacity has increased from one in 1990 to Both the leather products and upgrading.  Whil e the Ethi opia n gove rnme nt more than 30. to compete. the textile and apparel sectors Two state-owned banks, the is formulating policies to support  And the governm government ent has invested invest ed have been designated as top Commercial Bank of Ethiopia specific industrial sectors, for mas s iv ely in in fr as tr u ctu r e priority manufacturing industries development, focusing on transport in the recently released five-year and power generation. The road development plan (2015 to 2020). network expanded from 26,550km One reason for this is because (Cont'd from from PAGE 7) to 53,997km between 1997 they have strong linkages with and 2011. The country is set to the agricultural sector as they use of Access came after Ermias had the Asefaw’s Family Plc, for 57 million involvement in the process. quadruple its power generation inputs from the livestock and cotton single-handedly selected him. Br to Access. "I stand ready to make all the needed capacity when the Grand Ethiopian sectors. They are also both labour “He is just the same ol' same ol'  All his narration is simply to create sacrifices to achieve our mutual Renaissance Dam on the Nile is intensive, thus absorbing labour Ermias”, Abraha said in response public confusion, Mebrat W. Tenssae, Tenssae, objectives,” he stated. finished in 2017/18. One of the from the agricultural sector, and to the accusation. “He is trying to a board chairperson of ARE, told  ARE is now under an audit process largest hydroelectric power stations have major export potential and complicate things instead of becoming Fortune. by the government, which has almost in the world, the dam will generate low entry barriers. a part of the solution.” In his last statement, Ermias expressed been completed. It is said that the 6,000MW. To become internationally He went on to explain how Ermias his intention to still maintain an report is to be announced soon. Feeding on the boom in competitive, the Ethiopian had told the board that he had found construction, cement production Chinese partners, but when asked to has invited foreign has grown dramatically since 1999. government investors to provide much-needed bring them to hold a discussion he (Cont'd from P AGE 5) The average annual growth of investment capital and technological refused. cement production has been more capabilities. A slew of incentives has “He said he had signed an agreement the Hawassa Industrial Park is also first phase of the Bole Lemi Export than twice the world average. As been created to induce these firms  with them,” explained Abraha. “We paramount, given the complete failure Processing Zone, one of the parks a result, Ethiopia is now the third – as well as domestic ones that can also asked him to bring over the of the government to develop a single under its administration. There is no largest cement producer in Africa. meet international standards – to comparison between the two projects, park during the first phase of the Growth agreements, but again he refused.” however. Albeit the Hawassa Park is a State support has been both direct export. These include: Ermias, in the same letter, wrote that & Transformation Period (GTP I). few months overdue, it is worthwhile to and indirect. Direct measures subsidised land rent in industrial “We know that the past five years, we the management and the board had didn’t succeed in fulfilling our aims,” underscore that even an international include entry incentives for zones; agreed not to sign documents. chairman contractor with remarkable capacity, domestic firms, like long-term generous credit schemes; This claim, however, was countered  Arkebe Okubay (PhD), board chairman of IPDC, told Fortune in October 2015, may struggle to complete a project of loans for capital investments, easy by Abraha, who said that Ermias access to mining resources and the 100pc exemption from the payment commenting on the ccomplete omplete lack this magnitude on time. had tried to convince him to sign  while commenting allocation of foreign currency on a of duties on imported capital Dwelling on the missed deadline, documents related to transactions of progress in developing industrial goods and raw materials for the however, is an exercise in futility, as preferential basis. for the Gabi Real Estate and the old parks in the period, despite planning production of exports; and a senior executive at the Corporation  Additional  Additionally, ly, government provision Imperial Hotel without the knowledge to build five. noted, on conditions of anonymity, of transport and energy has been five-year tax holidays on profits. Mindful of the urgency to deliver in of the board. that construction at the Park has crucial. Export figures from the past two Nuredien Mohammed, general Hawassa which also rises from the need been completed since June 30, 2016.  years indicate indic ate positi positive ve trends for to bring rapid industrialisation to the Like the cement industry, the manager of Alle Bejimela, and This is good news for the several both industries. But the results are chairman of the technical committee country, the project enjoys top priority multinational companies who have Ethiopian floriculture sector has not yet near where they need to be status by the Corporation. organised to resolve the stalemate made commitments in the Park taking made important contributions to to make a significant contribution going had in the best way we can of the factory flLimited oor. Among at ARE, declined to comment on the “Things economic imagine,”are Arkebe said regarding the around issue. them are80pc H&M, PVH, Arvinfloor. and overall Cut flower exportsdevelopment. increased from to structural change. progress of the park in October 2015. others. three tons in 2003/04 to more than However, considering all the In 2012, it was said that Access Real Estate had sold the Imperial Hotel to From the onset of the project, the Some of the local apparel and textiles 50,000tn in 2011/12, substantially positive signs, Ethiopia might t o bec become ome the Metal Engineering Corporation Corporation attempted avoiding companies have been afforded generous raising export earnings. From 2007  very well be on its way to  Africa’s in dustrial powerhouse. powerhouse . (MetEC) for 83 million Br. This was the debacle that lasted for years, government loan incentives to set up to 2012, the sector’s employment sold to the latter by the original owner, surrounding construction of just the shop in the Park. doubled from 25,000 to 50,484.  Source:qz.com/717228  Source:qz.com /717228

Ermias T. Amelga . . .

Hawassa Industrial . . .

 

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N E W S

EU Pledge of 100m Euro to Stem Ethiopian Migrant Flow   Ethiopia   which hosts 750,000 refugees from Eritrea, South Sudan and Somalia Somalia contributes significant share of migrants to Europe.

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TES FA MOGESSIE  By   By  TESFA  were found to be Ethiopians while trying to enter the country claiming they are FORTUNE STAFF WRITER  Eritreans or Somalis. The European Union (EU), through its EU The initiative funded by the Italian Trust Fund, has made a commitment of 100 Development Cooperation came about million Euros to curb the flow of migrants after a collaborative screening to identify fleeing Ethiopia by mitigating pushing beneficiary weredas  by UN agencies and factors through the creation of jobs for the Government of Ethiopia. As such, the  would-be migrants. migrants. initiative targets around 80,000 direct and In view of the massive inflow of migrants over half a million indirect beneficiaries from Africa and the Middle East due across selected weredas in Amhara, Oromia to poor economic realities and volatile political situations, the EU is implementing and Tigray states. A recent study focusing on the status of returnees of irregular migration measures to dry out pushing factors.    u     h to Ethiopia showed that 22pc of the total    e Member countries of the Union are stepping    y    a    m 160,000 people are from Tigray State.    e up efforts to bolster border checkpoints to     l    A    w On June 14, President Juncker and Ethiopian minimise the influx of migrants crossing    e    n    e    y Prime Minister, Hailemariam Desalegn, deep into European territories.    A   :    y     b signed a strategic engagement agreement The European Parliament, its Council    o    t    o     h on a range of issues, including regional and Commission agreed on June 22,    P 2016, to the Commission’s proposal for EU Delegation Head to Ethiopia Ambassador Chantal Hebberecht while breifing media at Desalgn Hotel in Addis Abeba. peace and security, counter-terrorism, social and economic development, development, climate a European Border & Coast Guard to change and migration. reinforce cooperation in border control.  Africa or the Middle East. The EU has expressed. channeled funds for source countries, "Improving the livelihood of farmers Between 2014 and 2020, the EU under “The agreement on the creation of a  with t he belief that more jobs shoul d be in drought-affected areas, including the National Indicative Programme (NIP), coast guard shows that Europe is able created to absorb those who might be central and northern Ethiopia, and create plans to provide an initial 745 million to act swiftly and resolutely to deal with Euros to support government-led projects. common challenges,” a Commission tempted to migrate and encourage them more jobs," said Ambassador Chantal EU funding makes up around 34pc of the press release quoted its President, Jean- to remain at home. Hebberecht, head of EU to Ethiopia. total aid assistance Ethiopia received in the Claude Juncker as saying. “As of now, Ethiopia, one of the beneficiaries of the Individual European countries have also past two years. Europe treats the protection of its borders fund, currently hosts some 750,000 pledged aid to Ethiopia. The European from South Sudan Sudan,, Eritrea and as a common mission of solidarity,” refugees from In 2015, with nearly 300 companies Somalia. The country has also contributed agreement was signed just a month after  Juncker added. from EU operating in Ethiopia, the trade Italy endorsed 2.3 million dollars to  vol ume sto od at thr ee bil lio n Euro s. Migration remains a hot topic of debate significant numbers of migrants from East Ethiopia for a similar programme. Mediterraneann Sea The EU market absorbed approximately and discussion and some EU Member  Africa to Europe via the Mediterranea

- a treacherous journey which hasdrowned tragically States have sealed off their borders by claimed the lives of thousands reinforcing their coast guards, while substandard boats hav havee capsized. others including Germany opened their  when substandard doors wide. However, the common stance The intended outcome of this use of the they have agreed on is, the need to nip Trust Fund to address a complex issue and out-migration at the source, be it from the need for cooperation, has been clearly

Italy is one of Europe’s top receivers of asylum applications by Ethiopians with 95pc of the 6,350 that irregularly migrated to Europe in 2015. Official reports of Italian authorities also indicated that of the 3,500 immigrants registered last year up to 60pc

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33.6pc of the Ethiopian total exports,  whereas 19.5pc of imports to Ethiopi a came from Europe. The EU-Ethiopian relationship dates back to 1975 at which time an EU Delegation office in Addis during the Dergue's regime. I

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DASHEN BANK S.C CALL FOR TENDER

 

Open Tender No. DB/001/OT/2016/17

1. Dashen Bank invites all interested bidders for the supply of the following listed items for 2016/17 scal year

S/No.

Descripon Categor-A

1

Various Kinds of Stationery Materials

2

Cleaning Materials such as ABUJEDI, AIR FRESHENER, ALCOHOL, BLEACH, DETTOL, LAUNDRY SOAP, OMO, MOPS, TOILET SOAP, WASTE BASKET,

Categor-B PLASTIC BROOM with WOODEN HANDLE, ZEMBABA BROOM, VIM and others.

Categor-C 3

Dierent types of Toners for Fax Machine Cartridge Tonner Tonner L-150/1728, L-380, HP LJ Printer Tonner 1200, 3005, 3015, 405 0/4000, 5200, Olive Passbook Printer Ribbon, Tally Printer Ribbon 2030/2240, and Ribbon for Epson printer 7754 and others

2 .Interested and eligible bidders are invited to purchase the bid document starting from July 4, 2016 from Logistics and Property Management Department, Beklobet Adjacent to Garad Building 1st floor, having paid the non refundable fee of Birr 100 for each category at Dashen Main Bank Account Number 180020002 and present copy of credit advice ticket during the office hours (Monday to Friday 8:00 12:00am, 1:00 - 5:00pm and Saturday 8:00 – 6:00am).

4. 2% of the offer shall be presented as a bid bond in the form of bank guarantee or cashier’s payment order (CPO). 5. The sealed bid document shall be placed in the box prepared for this purpose on or before July 19, 2016, 6:00am at the place mentioned under No. 2 above.

3. Copy of renewed Trade License, VAT Registration Certificate and TIN Certificate are required while submitting the bid document.

7. The Bank reserves the right to accept or reject the bid either partially or fully.

6. Failure to comply with any of the conditions stated above from No.2 to 5 shall result in automatic rejection.

N.B 1. For the items stated under categor C, bidders should present authorized dealers dealership hip certificate. 2. For an information ou ma contact Tel Tel No 0114 66 45 44 Ext. 125/126

 Vacancy  V acancy Announcement

Equatorial Equat orial Business Group Pvt. Ltd. Co.

External Vacancy

Equatorial Business Group Pvt. Ltd. Co. invites applicants for the following posions. 1. Posion: 

Cement

Sales Manager, Veterinary (EPB)

Qualicaon:  Experience:  Dues: 

DVM in Veterinary Veterinary Medicine 8year's of which 3 should be in a senior posion.

 

Plans, directs, coordinates and controls the purchase, storage, sales and distribuon of veterinary pharmaceucals as per the rules and regulaon of veterinary drug and feed administraon and control Authority of Ethiopia and Company Policies.   Head Count:  1 (One) Interested applicants can submit or send applicaons with their nonreturnable CVs and tesmonials within 10 days from the date of this announcement.

Required 

No  Posion

1

mill & Packing Supervisor

2

Posion Requirement  Chemistry, Chemical, Mechanical & Electrical Engineer 

 

 

Weigh Bridge and Cement Dispatch 2 Supervisor 

2

Markeng, Accounng, Economics & Management 

Work Experience BSc with 4 years of experience 12+3 with 6 years of experience in cement and similar plants in Supervisory level. BA with 4 years’ work experience 12+3 with 6 years of experience

Female applicants are highly encouraged. Work Place ………………………………………………………………………… ……………………………………………………………………………. …. Factory (Derba) Terms of employment : …………………………………………………………. Permanent Salary …………………………………………………………………………………… As per company scale

Equatorial Business Group Head Oce,  Human Resource Saris Road (Near Addis Tyre Sh. Co.) Room No. 203 P.O. Box 8964, Tel. 011-442-49-55 011-44 2-49-55 Addis Ababa

Interested applicants who fulfil the above requirement can submit their application letter and copies of relevant testimonial testimonial documents in person to the following address within 7 working days of this vacancy announcement 

Derba Midroc Cement PLC Head Office

Nani Building/Reception / Tel: 011 5 54 98 88

 

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The historic referendum to quit the European Union (EU) by the majority of the British public has sent shock waves across the world and sparked financial market tremors. From New York to London and Hong Kong, stock markets tumbled sharply, fearing the potential risks in all unknowns,  writes Eyob Tesfaye (PhD), a macroeconomist.

Brexit: Who Would Take the Hit? hough the Brexit votes were driven more by concerns about immigration and unease about EU’s domination

The UK’s decision to leave the  EU will also increase increase the the pric pricing ing of bonds, making it difficult  for African African countries, countries, including  Ethiopia,, to access  Ethiopia access the the Eurob Eurobond ond market for investment funding.

in Brussels, it has far impacts that go beyond thereaching UK’s borders. The decision to leave the EU has unleashed considerable forces of market uncertainty, uncertainty, with the spillover effects already starting to haunt the it will have with the remaining 27 EU global economy. Major currencies members. Although the vote changes plummeted last week and jittery nothing for at least two years, it kicks investors took refuge in safest places off what are certain to be complex and such as the US dollar, Japanese yen arduous negotiations between them. and gold. Currently though, Britain is the most The International Monetary Fund important trading partner for the EU, (IMF) has already released a new if the UN trade data are any help to economic projection that the Brexit refer to. The EU’s exports to the UK into 2016 could reduce global growth are worth three per cent of the bloc’s by 5.6pc in its worst case scenario. GDP, while its imports reach 2.4pc. member countries  With the caveat that nothing is fully  Although most EU member clear in the immediate aftermath of run trade surpluses, they register the Brexit, there is little doubt about deficits with the UK when it comes to the consequences of referendum’s services, mainly financial in nature. outcome to the global economy, If the UK and EU manage to reach an including Africa’s. amicable separation agreement by

T

 Athevalid thise that turbulence of status giving, for instance, the UK a similar to that of Switzerland and pastlesson eight from yearsthe financial links transmit economic calamities Norway, allowing it free trade access, from one country to another almost there is a possibility of mitigating instantaneously instantaneou sly and often amplify the the economic effects of the Brexit. original shock. The precise impact However, if the EU applies punitive of the Brexit on the economy of Customs duties on goods, services Britain will depend on many factors, and investments from the UK, as including the future trade arrangement  well as erects non-tariff barriers and

restricts London’s ability to conduct could force the US Federal Reserve Euro dominated financial transitions, to put on hold its interest rate hike, the disruption would be severe with  which could affect productivity and the possibility of igniting a prolonged trigger the accumulation of debt. recession.  Apart from Europe, Brita Britain’s in’s decision to quit Europe has also raised the prospects of sustained apprehension in the rest of the global economy as countries struggle to surmise the possible impacts of the exit. The US economy is one of the candidates to feel the consequences of the exit. The ripple effects will affect US exports, investments, employment prospects both in England and back home. American investment in the UK is now reaching a whopping 600 billion dollars. The US also uses Britain as a gateway to access European markets for its exports, reaching around 60 billion dollars. If the UK goes into recession as a result of its divorce from Europe, it will no doubt jeopardise America’s access to the EU market. It will also have its own ramifications on American banks operating in Europe.  Again, if the British pound continues its plunge and sparks a Euro-wide crisis, it is likely to cause the dollar to be too strong, thereby reducing  America’ss competitivene  America’ competitiveness. ss. Moreover, a weak pound and Euro

 Whi le most th e UKs exi t cause fr from om turmoil the EU  would certainly in Europe, the effects of Brexit on  Asian economies, including China, is somehow limited to Hong Kong,  Vietnam and Cambodia. These are countries with strong ties with the UK; they may likely feel a noticeable hit. For China, the second largest economy in the world after the US and currently slowing down significantly, the exit cannot be good news. China’s bilateral trade with the UK has now reached 80 billion dollars and the Brexit could have an outsized impact on its future export performance. Even more worrying, should the exit fatally damage London as a premier global financial centre, the value of China’s investment will be impaired. China has to find an alternative before it is too late. Otherbeemerging tooexit. will also affectedeconomies by the UK’s Brazil, which was once the darling among emerging countries, is the list of countries to suffer the most. The Brexit will complicate its efforts to stop its economic breakdown, due to (Continued on PAGE 45)

 V I E W P O I N T 

 BY JEFFREY D. SACHS

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 The Meaning of Brexit he Brexit vote was a triple protest: against surging immigration, City of London bankers, and European Union institutions, in that order. It will have major consequences. Donald Trump’s campaign for the US presidency will receive a huge boost, as will other anti-immigrant populist politicians. Moreover, leaving the EU will wound the British economy, and could well push Scotland to leave the United Kingdom – to say nothing nothin g of Brexit’s ramifications for the future of European integration. Brexit is thus a watershed event that signals the need for a new kind of globalisation, one that could be far superior to the status quo that was rejected at the British polls.  At it s co re , Br ex it re fl ec ts a pervasive phenomenon phenomenon in the highincome world: rising support for populist parties campaigning for

In the middle of the Brexit campaign in May, it was reported that the UK had net immigration of 333,000 persons in 2015, more than triple the government’s previously announced target of 100,000. That news came on top of the Syrian refugee crisis, terrorist attacks by Syrian migrants and disaffected children of earlier immigrants, and highly publicized reports of assaults on women and girls by migrants in Germany and elsewhere. In the US, Trump backers similarly rail against the country’s estimated 11 million undocumented residents, mainly Hispanic, who

 Afghanist an a nd a cted in t he nname ame institutions are dysfunctional. They of anti-American sentiment (though surely are. One need only cite the committing mass murder with last six years of mismanagement automatic weapons is, alas, all too of the Greek crisis by self-serving,  American). shortsighted European politicians.  Wa r n i n gs t h a t B re x i t w o u l d The continuing eurozone turmoil understan dably, enough to put lower income levels were either  was, understandably, off millions of UK voters. dismissed outright, wrongly, as mere fearmongering, or weighed against The short-run consequences of the Leavers’ greater interest in border Brexit are already clear: the pound control. A major factor, however, was has plummeted to a 31-year low. In implicit class warfare. Working-class the near term, the City of London “Leave” voters reasoned that most  will face major uncer tainti es, job or all of the income losses would in losses, and a collapse of bonuses. any event be borne by the rich, and Property values in London will cool. especially the despised bankers of the The possible longer-run knockCity of London. on effects in Europe – including  Am er ic an s di sd ai n Wal l St re et likely Scottish independence; and its greedy and often criminal possible Catalonian independence; behavior at least as much as the a breakdown of free movement of British working class disdains the people in the EU; a surge in antiCity of London. This, too, suggests a immigrant politics (including the campaign advantage for fo r Trump over possible election of Trump and his opponent in November, Hillary France’s Marine Le Pen) – are Clinton, whose candidacy is heavily enormous. Other countries might

a clampdown on immigration. overwhelmingly livewithout peaceful and proper Roughly half the population in productive lives, but Europe and the United States,  visas or work permi ts. For many generally working-class voters, Trump supporters, the crucial fact believes that immigration is out of about the recent attack in Orlando control, posing a threat to public is that the perpetrator was the son of Muslim immigrants from order and cultural norms.

financedtake by Wall Clinton some hold referendums may choose of to their leave.own, and should note Street. and distance herself from Wall Street. In Europe, the call to punish Britain In the UK, these two powerful political  pou r en cou rag er le s aut re s   – currents – rejection of immigration to warn those contemplating the and class warfare – were joined by (Continued on PAGE 45) the widespread sentiment that EU

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 In the the UK, UK, th these ese two two powerf powerful ul  political currents  political currents – rejectio rejection n of immigration and class warfare – were joined by the widespread sentiment that EU institutions are dysfunctional.

 

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QUOTES

"Bringing Issayas down will not be the ultimate end, but the beginning of unknown ends."  Zerihun Teshome, Teshome, a political commenta commentator tor and au author thor of Kurkora - an Amharic book which partly deals with the Eritrean issue, said this in an interview with the weekly Amharic  Sendek . Following recent border clashes between Ethiopia and Eritrea, the debate to remove the Eritrean regime, by any means possible, has resurfaced.

Delicate  Number

620,000,000

The citytobus frequent cheap:are 15crowded cents single, return, anyservice stop onisthe route. and But buses and 25 it iscents easy to get lost unless the visitor speaks Amharic.

...total earnings, in dollars, made

Source: The Handbook for Ethiopia, Copyright 1969, University press for Africa.

from the export of coffee in ten months of the current fiscal  year,, met 81pc o  year off the ta target, rget, according to the report by the Ministry of Trade.

W  B  W  .  AY   BB  ACK   ACK   WHEN HEN W AY  W  AY   ACK  W HEN  . .......

 Addis Abeba between between 1958 & 19 1960. 60. Source: Historical photos from the Horn of Africa Facebook page.

 INVESTMENT Ministry Acknowledges Diaspora Investment in Tourism, Culture The Ministry of Culture & Tourism last Tuesday recognised 200 Ethiopians from the Diaspora who have invested in tourism and culture, acknowledging the huge role these sectors play in promoting the country's image and speeding up economic growth. The Ministry is working to maximise the

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tourism potential of the country and Diaspora investment in promoting culture and tourism destinations of their country in hotel, lounge, resort, travel and tour operations, would encourage further investment, Minister of Tourism & Culture, Ayesha Ayesha Mohammad (Eng.) said. So far, over 3,000 Ethiopians living in the Diaspora have created considerable jobs, generating foreign currency and attracting investment through their promotion. The Ministry is working to address challenges facing investors in the sector, she added. Publication: The Ethiopian Herald, June 30, 2016.  FINANCE EIB Establishes Office in Ethiopia Ethiopia and the European Investment Bank (EIB) last week signed an agreement for the establishment of the Bank’s country office in Addis  Abeba. On behalf of the government government of Ethiopia, Ethiopia, Ambassador Ambassador Tes Teshome home Tog Togaa signed the agreement in Luxembourg with the Vice-President of EIB for  African, Caribbean Caribbean aand nd PPacific acific States, Pim van van B Ballekom. allekom. The signing of the the agreement is an important milestone in the longstanding relations between Ethiopia and the EIB with regards to providing finance to key infrastructure infrastruct ure projects. The new office of the Bank will avail a closer and greater access to finance for both public and private institutions in Ethiopia, and will represent a substantial contribution to the development aspirations of the country. Publication: Walta Information Center, June 28, 2016.  Agency Revokes Revokes Licenses Licenses of 108 Charities, Charities, So Societies cieties The Ethiopian Charities & Civil Societies Agency annulled licences of 108 charities and societies, including 14 foreign ones, and issued written  warningss to anothe  warning anotherr 167. Pres Presenting enting its nine-mont nine-monthh performance performance report, report, the Agency’s Communication Deputy Director, Assefa Tesfaye, said the organisations had operated beyond their objectives, opened bank accounts  without permission, permission, failed to submit annual reports or to declare their

sources of finance. The Agency diverted to itself, over 19 million Br from banned and closed organisations. Some were inactive for three years, others  voluntarily  voluntar ily retur returned ned lice licences, nces, Assefa Assefa said. said. It also took measures measures against against 27 2755 organisations that broke the rules. The Manager of Hope for the Youth Charity  was sentenced sentenced to nine months’ imprison imprisonment ment and fined 5,000 5,000 Br for raising raising public funds without the Agency’s permission.

 BY EMMANUEL NNADOZIE

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Where Africa Needs to Focus  Africa rightly rightly has big amb ambitions itions for the future. future. Our continent is rich in both natural and human resources. We have a talented and energetic young population which, with the right support, can be a powerful motor for prosperity and progress. But this progress depends on Africa's having the capacity to turn these resources into the outcomes we want. And here we face a serious challenge. Compared to other more developed regions, Africa lacks the expertise - at both an individual and institutional level - to develop and deliver effective programmes to overcome problems and accelerate progress.  At a technical level, through a study study con conducted ducted by the the Afric African an Capacity Building Foundation (ACBF) for the African Union, for example, we identified a shortage of 4.3 million engineers and 1.6 million agricultural scientists and researchers needed for successful sustainable development. We can see similar and equally worrying skills gaps at a policy level at continental, regional and national institutions. Putting this right must be a priority if Africa is to be in control of its own successful development. Capacity constraints are a major brake on our continent's maximising its potential and overcoming the serious problems we face such as climate change, high youth unemployment and gender inequality. It is a challenge thatinthe ACBF is the determined helpcontinent meet by expanding its role providing expertisetoour needs. For the last 25 years, the ABCF has been the leader in building capacity. capacity. Over 50,000 experts in economics, financial management and public administration have been trained on policy formulation and decision-making. They have returned to their jobs better equipped to contribute to the development of their countries.  We are now determine determinedd to draw on this experienc experiencee and our unique in-depth knowledge of the strengths and weakness across the continent in a new chapter for the ACBF. Under a new five-year strategy, we intend to put a new focus on meeting the shortfall in critical technical skills, strengthening expertise in key institutions and developing leadership capacity. This will require us to look wider than building up capacity at the national level, important as that will remain. We will also put a new priority on working with pan-African and regional institutions and also with the private sector and civil society as well as share knowledge and expertise as  widely as possible. We need to build capacity right across the continent from the community level up.  We have identified, through our strategy strategy,, five ways we believe  we can best meet the continent’s needs for policy-making and technical expertise.  As we have done for many years, we will continue to provide grants to fund capacity development programmes and projects at all levels across the continent. We will use our long experience, when asked, to identify capacity challenges and to develop specific strategies to address them.  We will put new emphasis on bringing together eexpertise xpertise on capacity development from across the sector and providing a ‘one-stop shop’ where support and knowledge products can be accessed. We will work hard with all our partners to help them mobilise the additional resources they need to implement capacity development programmes. Finally,  we will work to design new innovative models to ensure the creation, retention and utilisation of existing capacity. It is a big agenda which will take the ACBF into new areas of work. But it also enables us to make maximum use of the insights and partnerships we have built up over 25  years of working successfully across our continent. It is a programme which will go a long way to achieving our aim of an Africa capable of identifying its own development and of turning our continent’s potential into better lives and greater opportunities for all its people.

Publication: Walta Information Center, June 28, 2016.  AGRICULT  AGRICULTURE   URE  Tractors  Tract ors worth 17m 17m Br for B Benshangul enshangul Youth Youth Benishangul Gumuz Regional State Technical Vocational & Micro and Small Scale Enterprises Bureau has distributed tractors worth 17 million Br to unemployed youth. These tractors are for agriculture by rural youth who have completed Grade 10, technical, vocational or university training, according to Gebremicheal Gudere, deputy head of the Bureau. He noted that the State had distributed 13 tractors to 500 unemployed youth organised in thirteen unions. Benishangul plans to buy 27 more tractors this month and to share plots of land for youth agricultural production and increase job opportunities, Gebremicheal added. Some unemployed youth in 20 rural weredas are also going be registered for further support. The Bureau has created job opportunities for 37,968 youth organised in 1,436 unions. Publication: Walta Information Center, June 27, 2016.  INDUSTRY   Seminar Highlights Highlights Optimisati Optimisation on in Textile Textile Processing Processing The Ethiopian Textile Industry Development Institute Institut e said lack of input supply, skilled manpower and quality manufacturing processes limit the sector’s revenue generation potential. Opening a two-day technical seminar on Process Optimisation in Textile Wet Processing the Institute’s Director General, Sileshi Lemma, said annual revenue earned from the sector is over 120 million dollars. Government is striving to make the textile sector significant in the national economy. Co-organised by the Institute and Indian Chemical Technology, the seminar emphasised the role of process optimisation in cost competitiveness and customer satisfaction considering the present reality of the Ethiopian textile and apparel industry. Ethiopia aspires to be the hub of light manufacturing industry by 2025 and is creating a conducive environment for investors.  Emmanuel Nnadozie (Prof.) is the Executive Secretary of Publication: The Ethiopian Herald, June 25, 2016. the African Capacity Building Foundation (ACBF).

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 As Ethiopia begins to exploit linkages between historic h istoric relationships with art and culture and the current climate of opportunities in tourism, Desta Meghoo J.D., cultural consultant, manager and curator, questions what the future holds for Africans who want to play an active role in the “commodification” of culture, to Africa’s benefit?

 Adding Value to Future of Art in Africa

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he First Global Map of Cultural & Creative Industries (CCI) published by Ernst &  Young in Decemb er 2015 states that CCI revenues surpassed telecoms servicesrevenues worldwide, CCI estimated at placing 2,250 billion dollars and providing 28.5 million jobs. The top earner was television, second was visual art and third newspapers/magazines. Visual art earnings were a whopping 391 billion and positioned as the number one employer of over 6.70 million people worldwide. These numbers do not properly reflect the informal CCI economy, estimated at another 33 billion dollars delivering 1.2 million jobs. Finally, visual arts alone, in  Africa and the Middle EEast, ast, gen generated erated over 13.1 billion dollars and over 350,000 jobs in 2013.  Yet, as the report states, “The notion of culture is often disconnected from the economic dimension …” So what do all these numbers mean for Africa as we try to understand the historic relationship with art and the current climate and opportunities for CCI? Also, what does the future hold for Africans who want to play an active role in the “commodification” of culture, to Africa’s benefit?  Vi su al (f in e) ar t, a si gn if ic an t component of the 14th to 17th

...requests for services such as insurance, security and transportation yielded a simple aychalum, translated, 'it’s not  possible'. The show was almost cancelled.

Century European Renaissance,  was reserved primarily for the elite; juxtaposed to the African relationship  with visual art. art. Continental creativity, creativity, a language of sorts, had profound meaning to creators and society alike,  with symbolic, substantial relevance and myriad uses. Intrinsic value  was placed on amulets, ceremonial masks, sculptures and so on, stemming from ancestral, spiritual and/or social norms. Much like modern art, the traditional creations also memorialised time, space and circumstance, but unlike modern art,  were woven into everyday life. The relationship with visual art in  Afri ca beg an its slow and stea dy change in the post-colonial era. But  valu  valuee or econ omic syst ems were still not developed to ensure the protection and promotion of art. Instead, the focus was placed on wellneeded art education. On July 23, 1958, as HIM Haile Selassie I opened the first ‘By African For African’ art institution along with its Founder,

 BY ASSEGED G. MEDHIN

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the artist Alle Felege Selam, after  whom the institution was named, it  was clear that the Emperor highly appreciated the significance of art. “If Ethiopian paintings and other

historic relationship with art or was it our natural desire to develop based on the mainstay of industry and agriculture? Maybe both. However, the delay in creating a system for CCI,

 wor ks ofthat artthey att ain suchold h a their hig h standard can… own amidst exhibits from other countries, they can certainly help in the efforts to make Ethiopia known more widely as a nation fully participating in the spirit and substance of modern civilization.” Eight years later in April 1966, President Leopold Sedar Senghor, hosted the Pan-African driven "World Festival of Black Arts" in Senegal promoting worldwide black culture. Its role and global impact were not lost on the poet President. “The civilization of the 20th Century cannot be universal except by being a dynamic synthesis of all the cultural  values of all civilizations. It will be monstrous unless seasoned with the salt of Negritude for it will be the saviour of humanity,” he stated unapologetically  Though Ethiopia and Senegal amongst other African nations were paying attention, visual art was contextualised socially and again, value chains were not put in place to ensure participation in the emerging economy of art.  Was this oversight influenced influenced by our

in general, has put usartonindustry the outside of a well-established that decides what and who is worth how much. It also eliminates income for providers in the areas of insurance, security, transportation and other services. In 2013, I co-curated the Embassy of Portugal’s multi-million dollar collection,  Bridges, at the National Museum. Thirteenth Century Ming Dynasty earthenware, lithographs by Oscar Niemeyer and Paula Rego (number 14 of the top selling living female artists) and pieces by prominent Ethiopian artists such as Daniel Taye and Merid Tafesse. The exhibit received over 5,000 visitors within nine days. Before the exhibition, requests for services such as insurance, security and transportation yielded a simple aychalum, translated, 'it’s not possible'. The show was almost cancelled. Had we not been creative in addressing these issues, Ethiopia’s opportunity to host an international show of such calibre would have (Continued on PAGE 44)

 V I E W P O I N T 

Break from Tradition in Insurance Industry 

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n the face of challenging economic times, pressing regulatory changes and increased The insurance sector in Ethiopia has competition for market share, not operated proactively with regard insurance companies are struggling to mitigating risks arising out of the to maintain their balance. impacts of directives. The time does not allow insurance companies to navigate traditionally Traditional al insurers have aggravated as the storm shifting through will Tradition favour those in the industry who their operational inefficiency as take advantage of today’s market to  well as service deliver y since they position themselves for long-term have been doing their business in a reactive way. future business. Capitalising on the current challenge  An ot he r ch al le ng e fo r ch an ge and turning it into a real opportunity resistant companies is an increasing  wi ll re qui re ne w st ra teg ies tha t compliance demand from federal, leverage human capital and increase state and other regulatory bodies demanding for more vigorous productivity. Manual processes, customer processes that can evolve and adapt retention, underwriting effectiveness, on a continuous basis, but that customer service response and claim also offer varying levels of control cycle times are all areas in which over how they are executed. In the change is required to approach Ethiopian insurance sector, a single businesses in a more dynamic fashion. directive affects the overall process In particular, we should keep in in typical insurance companies which mind that the Ethiopian insurance are not ripe for transformation. sector has always been a highly Insurance companies that understand regulated industry. New legislation the truly compelling need for this

significant stream of paper work from their processes, improve the customer experience and grow their business. The insurance sector in Ethiopia has not operated proactively with regard to mitigating risks arising out of the impacts of directives.  Wh et he r th e co mp an y fa ce s an economic crisis or not, pressure in the business environment urges insurance companies to be more flexible. For instance, instance, directives of no premium no cover, minimum required capital, corporate governance and federal proclamations like Vehicle Insurance Against Third Party (VIATP)  were implemented implemented because insurance companies found them difficult to plug all directives into their operation system because they were operating

and regulations are proposed and advantage transformation that have of toolsand available todaythe to adopted on a regular basis and in some cases when there is some increase operational efficiency and emerging risk or malpractice in the improve critical insurance processes, sector. Directives may be a proactive  will be leaders in the industry for years move and show the responsiveness of to come. the regulator towards risks. Business Process Re-engineering

traditionally. But we should not wait to react for directives to come, without having contributed to their design, proactively applied strategies to work accordingly and turned them into opportunities for business development.

(BPR) and Business Process Management (BPM) technologies, including adaptive case management solution and business architecture tools, can help insurance companies apply new strategies to reduce operational cost, eliminate a

Had there been the culture of professional debate and discussion involving all who are relevant, much cost and effort would have been saved. Insurance Companies must always find a way to break traditions which perpetuate a limited view of the customer and books of business. They should map out their risks and mitigate them proactively before they materialise.  What is the way out for this infant and acrimonious traditional business? Can we name any bank or insurance company that is international in any shape or form? If not, why do we use the name ‘international’ when  we name or brand our intuitions? Is it because we think globally and do things locally? Alas, this thinking is also traditional. New models of business and enterprise architecture need to arise; where integrating with new technology solutions and affecting process improvements that leverage the capabilities of existing personnel and applications can become the norm. Mere automation is not change, it is the know-how and knowledge-based service which should be underscored.  As insurance insurance companies companies must id identify entify (Continued on PAGE 44)

 

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OP-ED NOTES

 Too  T oo Much State Unhelpful to Rapid Industrialisation Consuming a projected cost of 246 million dollars, or part of it to date, and planned to be inaugurated just about a year since construction started, Hawassa Industrial Park (HIP) was meant to herald today,  July 3, 2016, a shift in the country’s march to industrialisation to the fast-lane. The inauguration  was cancelled cancelled last minute, but the country keep keepss ahead towards raising the share of the industrial sector in the GDP to 27.3pc by 2025, from 14pc at the end of the first edition of GTP I, in 2014. A flagship project of the Industrial Parks Development Corporation (IPDC), Hawassa's is just one of many similar public-financed projects estimated at 30 billion Br. In the next 10 years, 20 million square metres of factory floor space, in locations across the country,  will be be serviced serviced with with iindust ndustrial-scale rial-scale infra infrastruct structure. ure. The parks will be developed on 100,000ha of land. Under the IPDC, the Addis Industrial Village and the Bole Lemi Export Processing Zone are already operational. The Corporation is currently developing the Qilinto Industrial Park and plans to develop such parks in Dire Dawa, Meqelle, Kombolcha, Adama, Bahir Dar and Jimma. Just to speed things up, the Ethiopian Electric Power has recently entered two contracts for the supply of separately dedicated substations for Dire Dawa and Kombolcha.  While IPDC, under the watchful eyes of Arkebe Okubay (PhD), chairman of the Board, is in full swing implementing its plans, a similar initiative,  which has been been war warming ming uupp shel shelves ves as a ppropo roposal, sal, seems to be gaining traction of late. Spearheaded by the Ministry of Industry (MoI), after two years of silence from the first round of engagement, 13 specialised agro-processing industrial parks are in the loop and are estimated to cost 1.5 billion dollars. Four of these mega parks are planned for completion completion in the next five years in the Amhara, Oromia, Tigray and the Southern Nations regional states, at a cost of 900 million dollars. The Ministry has plans for an international investment forum aimed at mobilising additionalprivateinvestmentsinlight manufacturing, manufacturing, for later this year.  Another player in the contextual mix is Metals & Engineering Corporation (MetEC), a militaryindustrial complex but publicly-owned in its legal standing; it is composed of more than a dozen semi-autonomous manufacturing companies and actively operates in several sectors. MetEC also has its plans for the industrialisation of the country, eyeing the establishment, in the Bishoftu area, of an industrial park designated for IT firms. MetEC, though established to produce machinery for other manufacturers and serve as a tugboat to pull Ethiopia’s industrialisation to shore, seems caught up in producing consumer goods. Ironically, all the three state-owned entities are adamant that they have the magic bullet, portraying themselves as the vanguard of Ethiopia's transformation from an agriculturereliant economy into industrialisation fit for the 21st Century. Already spending billions of Birr separately and planning to continue doing so in the future, all three bodies propose to bring about the structural transformation of the economy, where manufacturing industries will have a more pronounced contribution contribution to the national GDP. Though this sector has enjoyed a 13pc average growth over the first four years of GTP I, its base has remained narrow; it only managed to contribute less than five per cent to the overall GDP at the end of 2014/15. Despite the tremendous amount of capital being mobilised by these three, and with no consideration of the apparently shared goal and priorities, there is a huge disconnect and lack of coordination among them. There appears to be a complete breakdown of communications, often bordering to competition between them. Sisay Gemechu, the CEO of the IPDC,  which is mandated mandated to develop and run industrial industrial parks in the country, went on record to say they have no link with or knowledge of the Ministry developing industrial parks. The ongoing turf war between IPDC and MetEC, and the ideological polarisation IPDC has with the Ministry is not the only strain hindering the nation from unleashing its full potential towards industrialisation. The evident deficit of a policy focus and coherence by the administration of Prime Minister Hailemariam Desalegn on what specific role each party ought to play and which path to take has left the question who is in charge unanswered. Clearly, it is casting a dark shadow over Ethiopia’s efforts to realise its goals for transformation to an industry-ledeconomy. Conceptually, the battle on the path to industrialisation involves two schools advocating for two different and competing approaches. Officials such as  Arkebee arg  Arkeb argue ue th that at hi highly ghly specialise specialised, d, ul ultra-m tra-moder odern, n, environmentally friendly and safe industrial parks can only bring rapid industrialisatiion on to the country country.. Such parks will be constructed in population centres and distributed strategically across the nation. They are

 The Future of Computing  Ever since the American computer performance out of ever-larger scientist John McCarthy coined chips, we can arrange computer the term “Artificial Intelligence” components in a dense 3D matrix similar to a human brain, in 1955, the public has imagined a future of sentient computers maximizing not performance, but and robots that think and act like energy efficiency. P I N I O N humans. Such a future may indeed O  Arranging computer chips in a arrive, although it remains, for BY BRUNO MICHEL 3D environment puts the various the moment, a distant prospect. elements of the computer closer  And yet the the foreseeable foreseeable frontier frontier of making that know-how available to broad to one another. This not only populations. They provide products, computing is no less exciting. We reduces the time they take to have entered what we at IBM call such as those connected to the Internet communicate; it improves energy of Things, with the ability to sense the the cognitive era. Breakthroughs efficiency by a factor of as much in computing are enhancing  world around them and to learn about as 5,000 – potentially providing our ability to make sense of their users. computers with efficiency close to large bodies of data, providing They also allow their operators to make that of a biological brain. Already, guidance in some of the world’s sense of large amounts of data, helping a much denser computer built most important decisions, and manage workflows, providing context, and from available mobile technology potentially revolutionizing entire allowing for continuous learning, better and hot water cooling allows for forecasting, and improved operational 10 times higher efficiency than a industries. The term “cognitive computing” effectiveness. And, finally – perhaps most conventional system. refers to systems that, rather than important – they allow their users to But man-made computers are being explicitly programmed, perceive patterns and opportunities that so inefficient not only because impossible to discover discover through are built to learn from their  would be impossible they need to power the chips, but experiences. By extracting useful traditional means. also because they need energy information from unstructured Cognitive systems are inspired by the to run the air conditioners that data, these systems accelerate human brain, an organ that still has much the information age, helping their to teach us. With systems growing in size remove the heat generated by the processors. The human brain has users with a broad range of tasks, and complexity, traditional computer a lesson to teach here as well. Just from identifying unique market architecture seems to be reaching its as the brain uses sugar and blood opportunities to discovering limits, as power consumption soars to provide energy and cooling to new treatments for diseases to and the transmission delay between its various regions, a 3D computer crafting creative solutions for cities, components becomes increasingly could use coolant fluid to deliver companies, and communities. burdensome. Indeed, when it comes to energy to the chips. The Cognitive Era marks the next energy efficiency – measured in terms of In addition to dissipating heat, the stage in the application of science the number of computations per energy fluid could be used to power an to understand nature and advance unit on “unstructured” data – the human electrochemical system providing human prosperity. Its beginning brain performs roughly 10,000 times power to the processors. This, dates to early 2011, when the better than the best man-made machines. in turn, would allow for further cognitive computing system Watson Today Today,, computers consume about 10pc of increases in packaging density beat two human champions on the world’s electricity output, according and thus efficiency. the game show “Jeopardy!”. Since to Mark Mills, CEO of the Digital Power then, Watson has gone on to do Group. In order to benefit fully from the By adopting some of the much more, demonstrating how Cognitive Era, we will have to be able to characteristics of the human brain, cognitive computing can use big harness huge amounts of information; computers have the potential data to tackle some of the most during the next 15 years, the amount of to become far more compact, difficult systemic issues facing “digitally accessible” data is expected efficient, and powerful. And this, humanity. to grow by a factor of more than 1,000. in turn, will allow us to take full Broadly, cognitive systems offer five Performing the calculations necessary advantage of cognitive computing for using such a large amount of data will – providing our real brains with core capabilities. sources of support, stimulus, They create deeper human not be possible without huge strides in new and inspiration. engagement, using data about an improving energy efficiency. individual to create more fully Matching the performance and efficiency  Bruno Michel is a a scientist human interactions. They scale of the human brain will likely require us to at IBM Research in Zurich. This and elevate expertise, learning mimic some of its structures. Rather than article is provided to Fortune  by from experts in various fields and attempting to squeeze energy-intensive Project Syndicate.

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designed to ease accessing services for manufacturers  with a one-window one-window service through through collaboration collaboration  withthe Ethioopian pian Inve Investme stment nt Com Commiss mission ion (EIC (EIC)) and Ethiopian Revenues & Customs Authority (ERCA). This approach also calls for the nurturing of exportoriented manufacturing industries and proposes generous government incentives, especially for local investors, to take an active role in utilising the parks. Not only do they attract capital from overseas, they enable the transfer of technology and create massive jobs in the shortest time possible. Proceeds from exports can be gained within few months of starting operations, helping the country foot its bills. They are not without a challenge. Their critics, mainly in the Ministry of Industry under Ahmed Abitew, point out that given the sheer size of Ethiopia’s rapidly increasing population, it will not suffice to meet the challenges of unemployment. Its vulnerability to heavy reliance on foreign capital is another point of contention, on the ground that no country is wise to leave its fate to trans-national companies which are only interested in the "race to the bottom".  Ahmedd aand  Ahme nd hhis is ex experts perts call for an aappro pproach ach that has the capacity to cover wide portions of the country with small- and medium-sized industries mushrooming all over. They rather would like to see rural satellite industries developed in the form of medium and small enterprises, creating job opportunities and also linking local farmers who can, not only sell their produce, but also consume manufactured goods. They hope to see the formation of the national capital in the hands of the indigenous private sector.  As the ideoloogical gical debate debate continu continues es and the the lack lack of consensus among EPRDFites lingers, the practical implementation of the different plans for various aspects of industrialisation is well underway. The blurred policy approach is causing disharmony in the government’s ability to effect change. In addition, prospective industrialists are left confused not knowing which route the government will adopt in the end, undermining their confidence. Most importantly though, there is fierce competition among these groups for resource allocations. The economy does not have the luxury of handing out cash at will. A resource-constrained economy wored better be in the hands of policymakers who know how to prioritise and where to place resources for optimum results. A poor country like Ethiopia cannot afford experiments carried out by competing interests to see what works best in the end. Frankly, the Revolutionary Democrats appear to be  wasti  wasting ng time time and resourc resources es where where they shoul shouldd not not.. It should not be the business of the State to drive the formation of industries where it prefers. Many countries have travelled that road and for years have little to show for their massive investments. They  woul  wouldd rather focus focus elsewhere elsewhere with with the potenti potential al to effect change better and faster. Driving industrialisation is all about reallocation of labour and resources from less productive sectors of an economy to where there can be more productivity both in volume and value. A state can achieve these objectives where it is relevant and rightly prepared  with potent potent policy policy tools. Rather Rather than claiming ng the roles of enabler and operator all in its own, it could choose and focus its priorities. It can invest whatever little it has under its disposal on skills development,  whil  whilee at the same same time time it should should enhan enhance ce access access to finance to citizens on the basis of equal opportunity.  Addr  Addressing essing criti critical cal constrraints aints in land provision provision and public infrastructure, particularly of power, goes a great length to help firms compete. It is worthwhile to bear in mind that in the globally competitive markets, it is not nations which compete, but the firms created as a result of a conducive business environment under light regulatory burden.  As it is, rega rdl ess of wha t Hai lema ria m's administration does in setting up industrial parks or promoting satellite agro-processing units in rural Ethiopia, no industrialisation can take off while the regulatory burden is painful, the logistical corridor is costly and the Customs procedure is cumbersome.  A ma manufac nufacturer turer operating operating insid insidee the Modj Modjoo Eastern ern Industrial Parks is robbed of its competitiveness  when it imports imports contai containers ners from China China which ch cost four times more from Djibouti to its factory than from China to Djibouti. A sensible thing would be to have a meaningful start in simplifying the procedures and opening up the corridor for competition. No less important is to improve the tax administration system in a way that it simplifies codes both to the taxman and the taxpayer. The tax agency has to create an environment of transparency and a mechanism for recourse by taxpayers to bring to account those who misuse and abuse their office there. Most importantly, though, the State should limit its role to creating an enabling environment where the private sector thrives in the industrial sector, on its own merit and far from a policy-induced approach. Issues of legislation, provision of basic infrastructure and incentives should be the State's preoccupation in bringing structural transformation to the country’s economy. economy.

 

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Commercial Bank of Ethiopia

  Tender Notice The Commercial Bank of Ethiopia, in accordance with the authority it was given by proclamaon No. 97/98 would like to sell the following oce and factory building along with texle machinery in its present condion in an open bid. Borrower’s Name

Owner of the property

Descripon of 

Lender branch Dire Dawa Dawa

Selendawa Borrower Texle S.C.  S.C. 

Locaon of the property

the property Fac Factory tory building buildingss (Factory (Factory 1&2, 1&2, rear side oce # 1 & 2 G+1, oce # 3 G+2, dormitory G+2, cafeteria and toilet G+1,car shade and cale house, clinic, lounge,cale keeper’s house, scale and personnel blokes,cale house and guard house) and various pleces of Texle machinery

LHC

Area of the  land

 

Bid Opening

Date

Dire Dawa መል/ሊ/2618 180,000m2 (18 town,Boren hectares) Jeden Kebele

Note

Starng Price   (in Birr)

Remark 

Time

452 452,75 ,754,5 4,567. 67.23 23 Au Augus gustt 9:0008, 2016 11:00 pm

The machinery was imported free of Customs duty

1. Any bidder or legal representave can parcipate in the bid by deposing 1/4th  of the starng price in a form of CPO. 2. The Bid will be opened at Dira Dira Dawa Town,Boren Town,Boren Jeden Kebele,House no. New at Selendawa Texle Factory. 3. A manager or deputy manager who wants to represent a private limited company or share company in the bidding has to present power of aorney, the Memorandum and Arcles of Associaon. In case of change of the Manager or deputy Manager, a Minute that states the change and endorsed by the Oce of Documents Registraon and Authencaon have to be produced together with Memorandum and Arcle of Associaon. 4. The machineriy was imported free of Customs duty. Any bidder who is entled

5. All oce equipments, raw materials, nished goods, vehicles, mixer and various iron sheets that are found in the compound of Selendawa Texle factory are not included in this bid. 6. Those interested in vising the property can do so together with the Bank’s sta oered at Dire Dawa district from the date of this announcement during working hours on working days in the compound of Selendawa Texle factory (Dire Dawa) or enquire in person found in Loan Recovery oce number 508, on the 5th oor, Sajidah Business Center behind Balcha Hospital. 7. The winner should pay the remaining amount of money within een days from the date of award. If the winner fails to sele the stated sum, the Bank will seize the deposited money. 8. Bidder that wins the tender and wants paral loan may obtain paral loan upon

to duty free privileges or be able to present document from the concerned government authority evidencing a duty free privilege aer the aucon, will be exempted from paying Customs duty. However if the bidder does not have duty free privilege or fails to bring document from the concerned government authority describing duty free privilege, Customs duty charges shall be paid on the machineriy in addion to the aucon winning price.

fullling the requirements of the Bank. 9. The Bank reserves the right to reject all or parts of the bid and to annul the bidding process.   For further informaon or claricaon call call T Telephone elephone numbers 0118-96-21-17 or 0118-96-21-25, or enquire in person Loan Recovery Oce,number 508 on the 5th oor,Sajidah Business Center behind Balcha Hospital.

External V acancy  

Equatorial Volvo Business invites external applicants for the following positions:1

2

Position

Head, Local Purchase

Qualifcation

BA Degree in Business Management/Ma Management/Marketing/Economics rketing/Economics or Related Field

Experience

8 years in Purchasing.

Duties

Under close direction compiles data on goods to be purchased from local markets; prepares bid tabulation and analysis; places purchase orders on time; handles correspondence with local suppliers; ensures the proper handling of goods to stores and settlement of purchase advances; supervises all purchase processes up to delivery.

Skills

Comprehensive knowledge of procurement principles and practices Comprehensive knowledge of company purchasing policies and procedures 2nd Grade Drive Driver's r's Licence

Position

Local Purchaser II

Qualifcation

College (10+3) Diploma in Purchasing and Supplies Management /Marketing or related eld

Experience

4 years of relevant experience

Duties

Under general supervision, undertakes local purchases of goods and services in accordance with set specications, at minimum cost and consistent with quality standards and delivery requirements; ensures the proper maintenance of documents; follows up all purchase processes up to delivery; assists supervisor in handling and managing local purchase.

Skills

Comprehensive knowledge of procurement principles and practices Comprehensive knowledge of company purchasing policies and procedures 2nd Grade Drive Driver's r's Licence

3. Posi Positi tio on

Junior Parts Engineer 

Qualifcation

BSc in Mechanical /Automotive Engineering or related eld

Experience

None

Duties

Under general supervision, processes spare parts sales provides technical advice to customers on matters related to the interchangeability and usage of genuine parts.

Head Count

1 (One) for each positions

Salary

Negotiable

Place of Work 

Addis Ababa Interested Applicants can submit in person Non-returnable applications with Current CV and Testimonials within 10 consecutive days after the date of this vacancy announcement to Equatorial Volvo Human Resource, Brown Building 1st floor. Equatorial Business Group Head Office, Volvo Human Resource Saris Road (Near (Near Addis T Tre re Sh. Co.) Brown Building P.O. Box 8964, Addis Ababa Tel 011-470-74-73/011442-49-55.

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

INVITATION INVITA TION FOR BIDS Procurement Number: 01/AU-PANVA 01/AU-PANVAC/16 C/16

CCS Comservice Solutions PLC

THE PAN AFRICAN VETERINARY VACCINE CENTRE OF THE AFRICAN UNION - DEBRE ZEIT ZEIT,, ETHIOPIA SUPPLY OF STAFF SERVICE BUS

 VACANCY ANNOUNCEMENT ANNOUNCEMENT

The Pan African Veterinary Vaccine Centre of the African Union has secured fund s for the sealed procurement of the above mentioned goods andof ancillary services, and now invites bids from eligible bidders for the Supply the  Supply Staff Service Bus whose specifications are detailed in the bid document uploaded in the AU website. Interested bidders can download the bidding document, the AU website: http:// www.au.int/en/bids. The deadline for submission of bids is 18th Jul 2016  at 2:30pm. Sealed bids will be opened on 18th July 2016 at 2:30pm in the presence of bidders or bidders’ representatives who choose to attend, at the address below. Both technical and financial offers should be in t he same envelope. Late bids will be rejected and returned unopened to bidders. Interested bidders may obtain further information at the address below between 7:30 to 16:00 local time: AU/PANVAC P. O. Box 1746, Debre Zeit, Ethiopia Tel. +251 11 433 8001 or +251 11 437 1347 Fax +251 11 433 8844 Email: [email protected] [email protected]  

Looking for a good and acve person to ll this place as an accountant. It’s a great opportunity for those who want to become a propro fessional accountant. Apply before it’s toolate! Job tle: Accountant MA degree in Accounng Educaon : B.A. Degree or MAdegree Experience:1 year of relevant experience is an advantage Requirement: -Only men can apply   -Communicaon and interpersonal skills -Ability to coordinate subordinates   -Basic Computer applicaon skills Salary: Negoable Interested applicants who meet the requirements shall send applicaon leer, leer, CV and non-returnable copy of other supporng documents within 7 days from the rst date of announcement to the following address.

[email protected] or [email protected]  or [email protected] Bids must be delivered to the address below on or before 2:30 pm on Monday 18th July 2016. The Director

Address: Bole Road  Friendship Cit Center, 5th oor Room no. 504 Contact number: +251-913-326820 Email: hutg@ahoo.com

AU-PANVAC P.O. Box 1746 Tel. +251 11 433 8001/+251 11 437 1347 Fax +251 11 433 8844 Debre Zeit, Ethiopia

CALL FOR TENDER

 

Open Tender Number DB/OT/01/2016  Dashen Bank invites all interested bidders for the supply of the unde r listed items; S/N

ITEM

Unit of Measure

PROPOSED  QTY

Key chain

Pcs

3,000

 

Execuve pen 

Pcs

1,000

 

Normal Pen

Pcs

2,000

Standard pen

Pcs

15,000

pcs

50,000

 

1

 

Gi items

Best wish cards and envelope for  

2

Ethiopian New Year

Pcs

30,000

Desk Planner

Pcs

6,000

4

Wall Calendar 

Pcs

20,000

5

Diary 

Pcs

5,000

6

T-Shirt

Pcs

3,000

 

3

European New Year

7 

Umbrella (Big size)

Pcs

50

8

Mug with Logo

Pcs

1,000

1. Interested and eligible bidders are invited to purchase the bid document starng from July 4, 2016 from Promoon Division, adjacent to Nifas Silk Painng 4th  oor, having paid non refundable fee of Birr 100 at any of Dashen Bank Branches; account number 180020002 & present copy of credit advice cket during the oce hours (Monday to Friday 8:00-12:00 AM, 1:00-5:00 PM and Saturday 8:00-12:00 AM). 2. Copy of trade license, VAT registraon cercate and TIN cercate which are renewed for 2008/2009 E.C are required while subming the bid document. 3. 2% of the oer shall be presented as a bid bond through uncondional bank guarantee or cash npayment order.

4. Bidders shall clearly specify the type of giveaway in their oer. 5. The sealed bid document shall be placed in the box prepared for this purpose up to July 18, 2016, 10 AM at the place menoned under no.1 above and the bid shall be opened at 11:00 at the presence of the Bidders or their respecve legal agents. 6. The Bank will not accept the late delivery of the stated items. 7. All suppliers should present samples of all the above items. 8. Failure to comply any of the condions stated above from no. 2 to 7 shall result in automac rejecon. 9. The Bank reserves the right to accept or reject the bid either parally or fully.

NB: For an informaon ou can contact with Tel 0114661645 / 0114653778

 

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 Arrada  A

The fallout from Britain's decision to exit the 28-member EU block has  had significant impacts on diplomatic, financial and economic aspects. The  reverberations have been felt, in some  shape or form, in different parts of the globe. As the drive to reverse the  referendum is already already in full swing and  gaining momentum, the outcome is  inspiring separationist issues elsewhere.

T

he unexpected, perhaps This is a relevant question to pose. s h o c k i n g d e c i s i o n b y The decision has baffled almost all referendum of the British the citizens of Britain living in various people to leave the European towns and cities all over the world Union raises more pertinent questions including the United States. than ever before. And this is not transpired in Scotland Scotland  without reason. The United Kingdom  What has already transpired and Northern Ireland, where most of (UK) government after 43 years of membership of the Union must have the people have chosen to stay within convincing reasons to give the people Europe, is the debate of having a of the country the opportunity to make referendum within their respective territories on whether to stay within the this crucial decision. Before we try to discuss the impacts of the decision, it is to be noticed that the percentage difference makes the outcome of the referendum not only a landslide but there were also millions who chose to abstain. The latest information heard at the time of writing was that based on British law, another referendum can be held and the petition petition signed by over 3.7 million people speaks volumes as the required number is 100,000. This means that those who may be regretting their previous abstentions could have another chance.  A survey conducted by the BBC BBC shows that the majority of people who opted to leave the Union are older people comprising factory workers, fishermen and the relatively less educated. The  younger generati on’s future destiny  was decided by people who have seen the best leaning days of their people, to theown far lives. right,These want Great Britain to regain greatness as in the colonial days of the Empire on  which “the sun never sets.” sets.” Can these remnants of those parents of the past turn back the clock of history?

UK itself ornations. have their own independent sovereign Should they opt for independence, some analysts predict that they could individually apply for membership to the EU. That request, if approved per the criteria set by the Union, they could be accepted if the reconsideration of the decision made last week were to be accepted by the EU.

Impacts of UK’s Decision

On the economic front the financial plunged, but which seems to be settling thee negative negative impacts. Falling giants like the IMF, IBRD, World  was one ooff th Bank and other bodies that can make market figures that showed a decline decisive indents in the economic by a significant eight per cent. situations of many countries are The Brexit move may also adversely dismayed by the decision and. The affect some countries like Ethiopia future of the UK pound, which had  which depend s very much on both UK and EU aid and assistance in the process their respective development and security-ensuring projects in their respective domains.

... we can safely say that “uncertainty“ is perhaps the household word in today’s politics.

By Girma Feyissa 

these countries to accept and live with or resolve the problem and supports, instead, chasing away Muslims and other citizens of Africa and the Middle East. In fact, he argues that Britain should expel those foreign-born UK residents of foreign origin. Consequences of the Brexit can also be seen from the light of other countries, like the fragile situation in Spain. The other case which we know more and

better for its Barcelona club In lightUS, of present pre-election debates is the Catalonia desire tofootball go it alone, in the the Republican presumptive candidate Donald Trump has not only a fragility which the next election is readily welcomed the UK decision to expected to show. leave the EU, he did not waste time  Although it takes at least two years to seizing the opportunity to link the process the divorce of Great Britain’s decision with future implications of decision, Prime Minister David the migration problem that European Cameron has decided to resign from countries have now have on their office much earlier. In fact, he plans hands. He proposes to deny the right of to leave his office in the next three months. From the perspective of what could be decided in the overwhelming decision to run and conduct a second referendum,  we do not have enough mate material rial ttoo give any conclusive statement at this point in time. However, we can safely say that “uncertainty“ is perhaps the household  word in today’s today’s politics.  We can spe cul ate on som e of the trends in the social, economic and political problems prevalent in some  African countries, including impacts of tribalism and narrow ethnicism. Take the case of South Sudan and the consequential refugee pressures they place on neighbouring countries like Kenya and Ethiopia. We shall cross the bridge when we come to the river. river. CITY LIFE

 

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 Achievi ng fun  Achieving functiona ctionall excellence excellenc e in managemen m anagementt and iintegrati ntegration on of llogistic ogisticss is crucial cr ucial ttoo Ethiopia’s Ethio pia’s transformat tran sformation ion to industry-led development that is sustainable, argues Yohannes Abebe (yohannesabebe10@yahoo. ([email protected]), com), procurement specialist in this commentary. commentary.

Functional Orientation Hinders Logistics Integration

F

or a landlocked country like Ethiopia, and a government engaged in a mega transformation plan targeted to achieve a middle-income economy and the sustainable development goals, building logistical competency is a matter of survival in business. Indeed the road and railway links, the construction of dry ports and airfields  with warehouses warehouses and and material material handling facilities shows the government’s desire to create integrated logistics. Despite these logistics network designs, goods are congested at sea and dry ports, and truck drivers seem on holiday as 40ft containers are loaded with huge quantities of construction materials destined for critical projects. Yet failure to design methods of controlling quality at the source is also raising the costs of reverse logistics.  At times stock keepers are surprised by the unexpected arrival of goods off  work hours. And they, in turn, look for inspectors and warehouse spaces, laying the goods on floors. Worst of all, the physical distribution starts with the exchange of several memos and after months of delay. This is not effective logistics management. In fact with a vision of building a manufacturing nation with industrial parks positioned at various strategic geographic locations and with a growing economy, our nation’s logistics  will become become so big big and complex. complex.

distributed by a driver with a physical distribution plan on hand. ... working on a campaign basis The reason is every section is willing to to appear to be taking corrective perform its own with no concern for measures after some fallout, and total cost minimisation. In this kind returning to the usual after the dust of situation, it will be very difficult has settled is boring and uneconomical. to achieve internal integration let alone a scenario with trusted external  As much as the oppo rtun ity exis ts suppliers. to expedite logistical operations the So far, the practice of inventory challenge lies on various limitations management is another problem for to logistic integration. According integration. Items are hoarded to to Bowersox and Closs (1996), the extent that finance allows, costinternal integration barriers include benefit relationships and risks of organisation structure, measurement obsolescence are no considerations. systems, inventory ownership and Inventory reports have no use except knowledge transfer capa bility bility.. for auditing purposes. On the other In the past decade, efforts have been hand purchasing and stocking parts geared to create process thinking that are insured and readily available in production and service delivery. in the market are costing organisations That has limited impact in changing thousands of dollars. function based work which writers  Whe n thi nki ng abo ut int egr ati on, call ‘functional silos’ leaving crossinformation technology takes central functional work to no man’s land. That place in the whole process. Government is so we are trained to perform specific should work for higher integration tasks with specific responsibilities. of the procurement agency, stateSimilarly, budget, measurement owned enterprises that effect strategic systems and rewards follow that line purchases, private enterprises and of structure. factories in industrial parks enabling them to share information on a realOn individual firm level, for instance, time basis.  when there is a proc urement request for a vehicle, the traffic section More importantly, without knowledge then requests petrol and per diem the role facilities play might be very for drivers. In some places, all limited. Despite the huge investment departments and branches have in expanding the opportunity to messengers/storekeepers collect their education at all levels, and seeking goods, which would otherwise be knowledge and skill transfer from

foreign companies, the ability of firms to create a level field for passing and sharing experience is discouraging. The lack of relative stability in the work setting is costing more individual firms and the country as a whole. Even to achieve functional excellence one has to gain a thorough understanding of the numerous logistics activities before reengineering and standardising work.  All in all individual firms should stop traditional ways of doing logistics in  which orders are lost in the hands of secretaries, maintaining excess inventory without proper forecasting, sourcing from improperly evaluated suppliers. In addition failing to plan ahead for  warehouse spaces, finding inspectors after the goods are received and then  working on a campaign basis to aappear ppear to be taking corrective measures after some fallout, and returning to the usual after the dust has settled is boring and uneconomical. Particularly departments should stop looking at each other with ill will. Blaming other sections will do nothing to the organisation as a whole and signals institutional weakness. Inventory stuck in one place is a loss in value unless it is positioned at the right time and place. Change is needed in the functional mentality and benefits of seeing the big picture will be widespread.

 V I E W P O I N T 

 BY JOHN RAO NYAORO (PHD)



Nile Cooperation Akin to Teamwork in Sports

F

or any football team, you have the goalkeeper, defenders, midfielders, strikers and the coach. These entities blend together so as to secure victory for their team. Separately, they would achieve nothing, for it is through teamwork (cooperation)) that the eleven players (cooperation can face their opponents (challenges) and win. The players are organised into two teams; on the one hand is the Nile Basin States, namely, Burundi, DR Congo, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, South Sudan, Sudan, Tanzania and Uganda and on the other, all the drivers including poverty poverty,, population growth, environmental degradation, climate change and natural variability, among others. Each team is chasing a piece of skin (the scarce Nile River  water resources for their livelihood) to drive into the opponent’s net and  win the game. game. On that basis, a lone Nile Basin player cannot assume all the positions and  win the game. It takes each player

 ...some 22 million people are expected to become more energy secure through a more reliable  power supply and lower lower power  generation costs.

by the Nile Basin Initiative (NBI) to achieve a common goal – improve the livelihoods of the more than 437 million Nile Basin citizens, in the  wake of shared risks and challenges affecting their shared resource, the River Nile. Eritrea participates as an observer.  Just like in football, where players avoid errors such as scoring own goals or being caught offside, the NBI has created an atmosphere of trust through which Member States can  work as a tea team, m, exchanging exchanging ideas and and expressing occasional dissatisfaction  while still s till respecting each ‘player’s’ importance to the overall sustainability of the river. Seventeen years since it was established, NBI has promoted

by overcoming a legacy focusingofonthings his key in theand grand scheme – role the team the cooperation of distrust and challenges between game – for them to achieve their countries in terms of politics, water common goal. demands and development status. theree was limi ted capaci ty Ten of these countries have agreed  Where ther to work together under a unique in the water sector at national and cooperation programme coordinated regional levels, NBI has sponsored

hundreds of individuals to undergo projects, over three million people both academic and hands-on training  wil l hav e bet ter acc ess to wat er in water-related courses. Today, water for sanitation and some 22 million resources projects are considered people are expected to become for their basin-wide implications, more energy secure through a more and the potential for shared benefits reliable power supply and lower from more and reasonable generation costs. One project sharing ofequitable the resource, is fully power recently commissioned is the Ethiopia/  understood. Sudan interconnection hydropower NBI has successfully created an project – this is already benefiting enabling environment for sustainable 1.4 million people in both countries. and equitable development of the The upcoming Annual Nile Council Nile Basin water resources. Trans- of Ministers (Nile-COM) meeting on boundary cooperation has advanced  July 14, 2016, in Entebbe, Uganda regional integration through identifying  will see Water Affairs ministers from and developing joint investments. By the region deliberate on how to  working to improve improve food, eenergy nergy and expedite implementation of already  water security as well as trade and prepared projects so as to contribute incomes, transformational change is to improved livelihoods of the people. being achieved. The ministers will also discuss how to These benefits are clearly visible achieve basin-wide Nile Cooperation, in the region, including regional given that the latter is not a choice but power interconnection and hyropower a necessity. projects between Ethiopia and Kenya, On that day, Tanzania’s Minister of and Tanzania, Rwanda, Burundi  Water & Irrigation, Gerson Lwenge and Uganda. Additional projects are (Eng.), will pass the captain’s proving to be transformative as well armband to Uganda’s Minister of as improving the resilience of some  Water & Envi Environment, ronment, Sam Cheptoris, of the Once poorest the as the team continues to play for the basin. fullycommunities implemented,inthese  victory.. projects promise to benefit nearly 30  victory million people in the next 10 years.  At least seven milli on peopl e will have improved food security from the  watershed and agriculture irrigation

John Rao Nyaoro (PhD) is Executive Director of the Nile Basin Initiative Secretariat. He can be reached at [email protected] [email protected] 

 

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INTERNATIONAL LABOUR OFFICE COUNTRY OFFICE FOR DJIBOUTI, ETHIOPIA, SUDAN, SOUTH SUDAN AND SOMALIA

INVITATION FOR CONSULTANCY SERVICE The International Labour Organization, Country Office for Djibouti, Ethiopia, Somalia, Sudan and South Sudan is looking for qualified Consultants as per the following details

Terms of Reference Content Development for Migrant Domesc Workers Workers (MDWs) rights and obligaon, FAQ on Irregular Migraon, and Social protecon of MDW in GCC states leaets Context and Juscaon The ILO is implemenng a three-year technical cooperaon project funded by the European Commission subtled: “Develpmet f  Tpte Fmewk f the Sppt d Ptec f Ethp wme Dmesc Mgt Wkes t the GCC Sttes, Leb d Sd”.  The project aims at strengthening the policy and operaonal framework in Ethiopia to ensure safe and regular migraon of Domesc workers to the Gulf Cooperaon Countries and improve protecon and reintegraon of returnees as an integral part of the socio-economic developmen developmentt agenda for possible expansion and replicaon. The project is directed to help governments, social partners and other stakeholders: I. Improve operaonal framework for cooperave acon and exchange exchang e of informa informaon on between sending and receiving countries; II. Make legal migraon more aracve and reduce irregular migraon; III. Streamline and decentralize the migraon process in the country of origin and strengthen recepon in receiving countries; and IV. Provide migrant domesc workers with relevant informaon and substanve training prior to departure and on return home to ensure their successful performa performance nce and reintegraon. reintegraon. V. To track labour migraon paerns and trends from Ethiopia. In this regard, the ILO in collaboraon with the Ministry of Labour and Social Aairs (MoLSA) would like to recruit a consultant to produce various educaonal materials useful to give concise explanaon on the migraon process for aspiring MDWs and MDWs to Kuwait, Saudi Arabia, UAE, Qatar, Oman and Bahrain, Lebanon and Sudan. The consultant should gather up-to-date informaon on the migraon process from the pre-departure formalies to explaining maers like employers social and cultural customs, current immigraon rules and laws and policies in desnaon countries. The consultant should also provide informaon on rights and obligaons and social protecon aspects of MDWs while working in the GCC, Lebanon and Sudan. The main objecve of commissioning these consultancy to develop a various promoonal materials for the MDWs to beer equip them with the relevant knowledge before departure and upon unl arrival back to Ethiopia. Henceforth, the work should take in to account the specic country context as well as provide all relevant informaon to make MDWs feel safe and secure in the desnaon country to assist’s them to work successfully, enhance their ability to become self-sucient more quickly and assist them to reintegrate into the labour market more smoothly once they are back in Ethiopia. Funcons and responsibilies 1. Collect key relevant informaon concerning the overall process of migraon of Ethiopian MDWs to Kuwait, Saudi Arabia, UAE, Qatar, Oman and Bahrain, Lebanon & Sudan, i.e. pre-departure, during employment and upon return and reintegraon and from that produce the below listed materials; a. MDWs Rights and Obligaons leaets b. FAQ on Safe and Fair Migraon c. Social protecon of MDW in GCC states, Lebanon and Sudan 2. Develop the products products in a manner th that at is understandable understandable by the target audience; The brochures should include informaon such as the below listed;

  Immigraon rules and laws and all relevant informaon that aect

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Ethiopian MDWS of origin country and desnaon countries;

  Ways of regular migraon;   Pre-decision making considera consideraons; ons; 

  Recruitment;

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Pre-departure preparaon;

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Customs related maers;

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Arrival in desnaon country; At work/In-service; End of Contract; Extension of stay; Return and reintegraon; Repatriaon due to various reasons; MW rights – and responsibilies; How to defend rights; Aer arrival steps to follow; Social pracces; Potenall vulnerabilies; Potena Ways to be safe. Social Protecon aspects

Timeframe 8 -22, July 22, 2016 Deliverables

The consultant will deliver the following: 

An Incepon Report that will include the proposed methodology and a detailed work plan;

  A rst dra of the brochures;   Presentaon of the brochures to ILO and MoLSA;

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A nal brochures incorporang any comments suggested by the ILO and partners.

Deliverable should be submied in hard and electronic copy to Ms. Aida Awel, CTA, [email protected] and Ms. Eden Teklay, NPC, [email protected] Deliverables Date

Deliverables 1: Incepon report on July 11, 2016 Deliverables 2: 1st dra on July 18, 2015 Deliverables 3: Final report on July 22, 2016 Required Educaon, Experience and Competencies 

  At least Master’s Degree in Social Sciences or Development Studies.   Five or more years of professional experience in a related eld.   Proven experience in data analysis and administrave reporng

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procedures. 

In-depth understanding of the labour and human rights based approaches and how they apply to migrant workers labor issues.

  Proven me management skills, coordinaon and knowledge of

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research ethics. 

Good draing skills, ability to communicate eecvely both pictorial, orally and in wring, ability to clarify informaon, good computer applicaon skills, good organizaonal skills, ability to deal with people with tact and diplomacy, etc.

Applicaon Guidelines Interested applicants should submit their leer of applicaon, CV, copy of credenals, other supporng documents that show previous work experience, technical and nancial proposal to the following address: The Administrave Assistant (Migraon), Countr Oce for Ethiopia & Somalia Internaonal Labour Oce PO Box 2788 ECA - Addis Ababa   Deadline for subming applicaons: applicaons: Jul 5, 2016

 

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C O N T I N U A T I O N

 Adding Value Value to Future . . .

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to urge policy makers and private a solid art industry can help protect an inherent component of tourism, the promotion of contemporary been lost. The possibilities and opportunities sector investors alike to assess the artists’ rights, promote the creativity of Ethiopia’s substantial inventory and traditional art among other are endless as evidenced by the  viability of a value chain for art to the country and continent within and and access to ancient and fine art, concerns. Ernst & Young report. Addis include numerous related industries across borders while sending a clear make Ethiopia a prime destination. In closing, a voice from the African  Abeba has a clear ad advantage vantage as the in addition to insurance, media message to Western counterparts that Discussions are also being held Union Commission (AUC) is helm of its creations. creations. between artists/activists and the diplomatic capital of Africa, seat and security such as appraisal,  Africa is at the helm pertinent and worthy of everyone's technology, and more. So what does the future hold?  African Union Commission’s Trade & consideration. of the African Union and the UN Economic Commission for Africa But in all fairness, the Ethiopian The Ethiopian Minister of Foreign Industry Department on positioning Adhan om (PhD) , CCI as an integral element to boost “Arts and culture are more than our boosted by international media, private and public sectors have been  Affai rs, Tedros Adhanom including a 2014  New York Times taking slow steps towards capitalising recently visited my birthplace, intra-Africa trade. Initiatives would heritage, they represent a key vehicle piece noting as Addis Abeba, “An on this emerging industry. The  Jamaica, known worldwide for its include push for policy shifts to for Africa’s structural transformation ambitious art scene heads towards aforementioned business sectors assertive tourism industry. Trade harmonise country and continental and economic emancipation,” AUC the international stage.”  would be wise wise to cconsider onsider diversifying diversifying and tourism were tabled as areas  value systems, systems, ensuring IP protection protection Director for Trade & Industry, The time is perfect for us to stake services to address the growing CCI as of mutual concerns. And as art is for artists and indigenous rights and Treasure Maphanga suggests. our claim to African creativity for the benefit of the artists and all (Cont'd from from PAGE 28) other actors, or face being further disenfranchised. Take for instance their core process with the multiple and keep telling their clients about They need to change their core market growth through word of Sotheby’s auction house. Is it fair support process and avoid multiple the merits of the old days. business process that will enhance mouth can be achieved, optimisation or even fathomable that the famous touches both in the core as well In an ever changing business operational efficiency and control of customer service and cover auction house estimated the value of as support process, they need environment, there is a period of expense across their service value handling will happen. In addition, the iconic 16th Century, 22cm tall to simplify complex work flows “storm and strike” and traditionalists chain, driving for leverage. Moreover, there will be expanded report ivory mask, looted from Benin by the and handoffs and implement an  will eventually be pushed out. they should integrate automation capabilities to proactively manage British, at over six million dollars? integrated seamless process to have  work and directives, an enhanced  Wi th th e is su es ad dr es se d so across silos.  And Christie’s auction house, sold a competitive advantage. c om pl i a nc e m oni t or i ng a nd Cha ng e t he ov e r a l l m i nds e t far (change plus automation), Ethiopian-American Julie Mehretu’s  Automat ion has to be proper ly in companies must be prepared to focus and attitude of employees, and management scheme will take root, 2013 painting for over 4.6 million place in this process so as to get on retaining profitable customers, management is also critical. Last customer request response time will dollars; making her the number the right information from disparate attracting new customers through but not least, is the introduction of highly be minimised, and the number seven top selling living female visual data sources for optimum decision myriad distribution channels, business ethics and accountability of employees “missing in action” will artist in the world! How was the be reduced  value determined and could these making, and fight very-rigged delivering new products, and to secure change tools and control Insurance companies need to do pieces have been worth even more? application environments to ease the providing high quality customer conspiracies to undermine the away with traditional approaches change. Ethiopia will welcome Julie Mehretu: Mehretu: effect of inefficient business process. service. to their business models if they are Some insurance companies in  When real BPR and BPM take place Thepast Addis , anworks, exhibition of Ethiopia introduce automation in the dare Insurance company to change their executives companieswho - to and the role of traditionalists is to meet emerging challenges of the 17 andShow recent curated 21st Century. by Cornell Univericity's Professor context of a very rigid management streamline processes and deliver minimised, a typical insurance  Assegedd G. Medhin Medh in (EMB A) is Dagmawi Wubshet sponsored mainly philosophy, or attitudes cemented in improved performance to support company’s claim process and claims  Assege by the US Embassy. This upcoming anti-change stance. There are still profitable growth strategies must leakage will be managed in an certified by the Chartered Insurance exhibit provides another opportunity some others who love the status quo   work on the four key strategies. improved manner, fundamental Institute (CII).

Break from Tradition . . .

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 VACANCY ANNOUNCEMENT

 Andinet International International School School (AIS) Andinet Internaonal School (AIS) has become a Cambridge Examinaons Center approved to oer the Cambridge IGCSE, AS/A Levels, and AICE. This leer is to extend our invitaon to you to join our growing Cambridge community. AIS students who sat IGCSE exams, for two consecuve years and AS Level exams, this year, have performed very well and we expect the trend to connue. The IGCSE, AS and A Level examinaons are the world’s most popular in internaonal qualicaons for 14 to to 19 year olds. They are the gateway tto o higher educaon or professional studies in one’s home country or abroad. Such qualicaons can help students: Develop strong academic and personal skills that lead to a successful   life Gain acceptance at colleges and universies around the world   Posion themselves to take advantage of beer career opportunies   Andinet Internaonal School is accredited to teach the Cambridge Internaonal Programme. For the 2016/2017 school year year,, AIS will oer the following IGCSE courses: courses : Mathemacs Physics Biology English (First Language) Chemistry Global Perspecves French (Second Language) ICT Advantages of AIS include: small class sizes, character development, extracurricular acvies such as Model UN, Peace Club, Leadership Club and an excellent athlecs programme. If you would like to know more about our programme, please contact: Ms. Nefer Makeda, M.Ed., Head of Centre ET004, at nefer.makeda@ andinet.edu.et   or you may call our admissions oce directly: +251 116 andinet.edu.et 479986 to inquire about registraon and enrollment.

Andinet Internaonal School (AIS) seeks inspired and creave teachers creave teachers who have chosen the teaching profession as a career and who are:   Passionate and enthusiasc about student learning   Competent in teaching and skilled in dierenang instrucon   Outstanding in work ethic Internaonally minded     Team oriented   Technologically Technologically adept   Flexible with a sense of humour   Forward thinking   Eager to grow professionally because they understand that learning does not end with your degree   Adaptable to a fast growing and developing school Now accepng CV’s for the following posions:posions:  Cambridge Programme Coordinator   Cambridge IGCSE Teachers Teachers   Teachers in all subjects including IT, Music and Art English Teachers (Nave Speakers are given preference)     French Teachers   School Counselor   Students Supervisor (minimum diploma in a related eld) Qualicaons:: Minimum requirements-Bachelor’s Degree in subject with signicant Qualicaons experience accepted, (Bachelor’s Degree in Educaon preferred), at least three years teaching experience, (relevant teaching cercaons for internaonals), strong communicaon skills, uent in spoken and wrien English (examinaon will be administered). Materials needed: CV with cover leer, photo, copy of degrees and cercaons, three leers of recommendaon and names/contact names/contact informaon of three referees. referees. Original degrees and cercaons must be shown at interviews. We are commied to:  to:  Oering a compeve salary and benets commensurate with educaon and experience, building a collegial school community that upholds the school mission and vision, providing a posive work environment, support to teachers, and professional development. You may apply to: Andinet Internaonal School Human Resources Oce Gurd Shola (on the way to CMC) behind the Ethiopian Athlecs Federaon Building near Water Works Oce P.O.Box 1289 Addis Ababa, Ethiopia Telephone: +251 116-47-99-89 E-mail: [email protected]; Website; www.andinet.edu.et www.andinet.edu.et Deadline for Applicaon: Ten das aer this vacanc announcement is published in the newspaper(s). Only short listed candidates will be contacted contacted for interviews. The school reserves the right to employ before the ten days if suitable candidates are found.

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

Brexit: Who Would . . . a full blown political storm it is currently going through. The economic and financial repercussions of the Brexit  will have a knock-on knock-on effect on  African economies. economies. Th Thee UK is a financial hub in Europe; thus, countries such as South Africa, Nigeria and Kenya, whose economies are well integrated  with the UK, wi willll fe feel el th thee im impact pact on their financial markets,

designed to favour European Trade relations between the EU farmers and hinder African and Africa are governed by the farmers’ competitiveness in the Cotonou Agreement of 2000 export market. With more than as well as a series of regional 60pc of Africa’s economically deals under the economic active population working partnership agreements. in agriculture, the subsidies The UK’s eventual departure play an important role in the from the EU will fundamentally livelihoods of a majority of change the partnership  Africans. agreement between the trading Now with the British departure, blocs such as COMESA, EAC there will not a be strong voice and ECOWAS. It is also an  within the bloc advocating for inopportune moment for many  African farmers.  African  Afr ican coun tri es current cur rent ly Britain is the largest contributor facing external shocks due to falls in commodity prices

(Cont'd from from PAGE 24)

expensive. The weaker Kenyan including Ethiopia, to access Shilling will make imports more the Eurobond market for expensive and one of Kenya’s investment funding. Any top exports, cut flowers, could continuation of the market suffer from a declining pound  volatility will have significant Sterling as Britain’s appetite for implications on past and future imports is expected to be low. foreign bond borrowings. Britain exit from the EU could Following the leave votes, not have come at worse time  Afr ica n Eur obon ds alr eady for Nigeria, Africa’s largest plunged. Nigeria’s dollar bond economy. At a time when it is due in 2023 has seen its yield struggling to fix its economy, economy, the rate raised to 7.3pc, according

particularly if the UK’s economy immediate effect of the Brexit to Bloomberg data. Ethiopia’s ramificationss 2024 Eurobond yields climbed goes into recession. South  will have serious ramification  Africa’s battered economy has for Nigerial, which is already on up by 10 basis points to reach 7.98pc, the highest since June already started to feel the Brexit the brink of a recession. impact as its currency, the The UK is Nigeria’s largest 14, 2016. Yields on Rwanda’s rand, is on a downward spiral. source of foreign direct dollar debt due into 2023 have  A numb er of Sout h Afri can investments; it is also an spiked to 7.59pc. countries, which have firms important export destination. The biggest impact of the listed in the London Stock  A slowing British economy economy and and decision by the majority of the Exchange, have lost a hefty its reverberating effects could British public on Africa will amount of their stock values as signal a drop in investments, come due to the end of British a result of the current turmoil. trade and remittances. largesse, its concerns with For countries like Kenya with  An incre ase in the price of and responsiveness to global the twin fiscal and current bonds is another outcome of development issues. The UK account deficit, the Brexit the UK’s decision to leave the has been a staunch opponent means external financing of EU, making it difficult for a of the European Common ur al Po li cy (C AP ) the deficit is likely to get more number of African countries,  Ag ri cu lt ural

and high costs external borrowing. Thereon is not much ...countries such as South Africa, Nigeria they can do except to adjust and Kenya, whose economies are well their domestic economic integrated with the UK, will feel the impact policies to the new reality. on their financial markets...  As su mi ng th e wo rs t ca se scenario, Brexit will leave behind a legacy of disruptive impact, particularly in shortterm uncertainty. The long-term impact will not be felt any time soon.

of development aid to Africa  with a commitment to spend 0.7pc of its Gross National Income (GNI) on development aid. If the UK economy goes  Eyob Tesfaye works for into recession, the flow of aid to UN agencies; none of the  Africaa will diminish  Afric diminish subst substanti antially ally comments made here reflect affecting countries such as the views of the agencies for Ethiopia and Sierra Leone.  which he works.  A

 The Meaning . . .

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same – is already rising. This is European politics at its stupidest (also very much on display vis-à-vis Greece). The remaining EU should, instead, reflect on its obvious failings and fix them. Punishing Britain – by, say, denying it access to Europe’s single market – would only lead to the continued unraveling of the EU. So what should be done? I would suggest several measures, both to reduce the risks of catastrophic feedback loops in the short term and to maximize the benefits of reform in the long term. First, stop the refugee surge by ending the Syrian war immediately. This can be accomplished by ending the CIA-Saudi alliance to overthrow Bashar al-Assad, thereby enabling Assad (with Russian and Iranian backing) to defeat the Islamic State and stabilize Syria (with a similar approach in neighboring Iraq). America’s addiction to regime change (in  Afghanist an, Ira q, Libya , and Syria) is the deep cause of Europe’s refugee crisis. End the addiction, and the recent refugees could return home. Stop NATO’s expansion to Ukraine and Georgia. The new Cold War with Russia is another US-contrived blunder

the European economy and ample social spending for the European project. health, education, training, Do not punish Britain. apprenticeships, and family Instead, police national support, financed by taxing the and EU borders to stop rich and closing tax havens, illegal migrants. This is not  wh ic h ar e gu tt in g pu bl ic  xe no ph ob ia , ra ci sm , or revenues and exacerbating fanaticism. It is common economic injustice. It also sense that countries with the means finally giving Greece  world’s most generous social- debt relief, thereby ending the  welfare provisions (Western long-running eurozone crisis. Europe) must say no to Focus resources, including millions (indeed hundreds additional aid, on economic of millions) of would-be development, rather than migrants. The same is true  war, in low-income countries. for the US. Uncontrolled migration from Restore a sense of fairness today’s poor and conflictand opportunity for the ridden regions will become disaffected working class overwhelming, regardless of and those whose livelihoods migration policies, if climate have been undermined by change, extreme poverty, and

 wi th plattached. en ty of Closing Eu ro pethe an naiveté door on NATO expansion  wou ld mak makee it pos sib sible le to ease tensions and normalize relations with Russia, stabilize Ukraine, and restore focus on

Director of theUniversity. Earth Institute at Columbia He is also Director of the UN Sustainable Development Solutions Network. This article is provided to Fortune by the Project Syndicate.

financial crises and This the lack of skillstheand education outsourcing of jobs. undermine development means following the social- potential of Africa, Central democratic ethos of pursuing  America and the Caribbean, the Middle East, and Central  Asia.  All of thi s unde rscor es the need to shift from a strategy of war to one of sustainable development, especially by the US and Europe. Walls and fences will not stop millions of migrants fleeing violence, extreme poverty, hunger, disease, droughts, floods, and other ills. Only global  Restore a sense of cooperation can do that.

 fairness and opportunity opportunity  for the disaffected working class and those whose livelihoods have been undermined by  financial crises and the outsourcing of jobs.

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C O N T I N U A T I O N

Jeffrey D. Sachs is professor of Sustainable Development, Health Policy and Management; and

Dashen Bank S.C. DB/Vacanc- 030/16

ANNOUNCEMENT MENT  VACANCY ANNOUNCE Dashen Bank is pleased to announce the following vacancy.

Job Title:

1. Customer Service Agent I 2.Customer Service Agent I-Front Oce

Required Qualicaon   B.A. Degree in Accounng/Management/Economicsand related elds with a CGPA of 2.50 and above Relevant

Experience:-

Other  

requirement:-

Place  

of Work:

Sa Salary   lary:As

Not required Computer Literacy

Awassa District, District, Bahir Dar Distri District, ct, Mek Mekelle elle District, District, Adama District, Jimma District, Addis Ababa

per the aracve salar scale and benet packages of the

Bank Interested applicants fullling the above requirements are invited to submit in person their applicaon leer, curriculum vitae and copies of non-returnable supporng credenals along with the original documents for vericaons to Human Resources Management Department located near to Nefas Silk Paint Factory (ሳሪስ አካባቢ ንፋስ ስልክ ቀለም ፋብሪካ አጠገብ)  unl Jul 12, 2016. NB:NB:-  

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Graduates of the year 2008 E.C can apply with their last year CGPA or 3rd rst semester CGPA

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Applicants are required to indicate their preferred place of work in their applicaon and centre of examinaon when they come for registraon.

MANAGER-HUMAN N RESOURCES To: THE MANAGER-HUMA MANAGEMENT DEPT. DASHEN BANK P.O. Box 12752 Addis Ababa

 

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ሐበሻ ሲሚንቶ አ.ማ Habesha Cement Share Company

 Vacancy  V acancy Announcement Habesha Cement S.Co would like to invite qualied and competent applicants for the following vacant posions: S.N

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Posion

Qualicaon

Corporate Planning & Risk Analysis Service Head

BA/BSc/MA/MBA/MSC Degree in Economics/ Business Administraon Administraon// Finance/Stascs or other related discipline

BA/BSc Degree in Economics/Business Planning Expert Administrao Administraon/ n/ Finance/ Stascs or other rrelated elated discipline

2

BA/MBA/MA Degree in Markeng/ Business Administraon/

Senior Market Researcher

3

4

5

6

Bachelor’s 11 years' Master’s Master ’s 9 years' relevant relevant experience out of which at least 4 or 3 years' in related senior posion

Skills Required

Good leadership skills, movated, self-starter self-starter,, good team player

5 years' related experience

Good communicaon skills, movated, self-starter self-starter,, good team player

Bachelor’s 8 years' ; Master’s 6 years' relevant

Good communicaon skill, movated, self-start self-starter er,, good team player, easy learner

Management/ Economics or other related discipline

experience

Promoon Ocer

BA/BSc Degree in Economics/Business Administraon/ Administrao n/ Finance/ Stascs or other rrelated elated discipline

5 years' related experience

Sales Ocer

BA Degree in Markeng/ Business Administraon Administraon// Management/ Economics or other related discipline

5 years' related experience

Brand Manager

BA/MBA/MA Degree in Markeng/ Business Administraon/ Management/ Economics or other related discipline

Bachelor’s 8 years'; Master’s 6 years' relevant experience

BA/BED/MA/MBA in Management/ Business

Bachelor’s 11 years'; Master’s 9 years' relevant

Administraon/Public Administraon Administrao n or other related discipline

experience of which at least 4 orout 3 years' in related senior posion

BSc/MSc in Chemical/ Process/Electrical/ Mechanical Engineering or related engineering discipline

Bachelor’s 10 years'; Master’s 8 years' relevant experience out of which at least least 3 or 2 years' iin n related senior posion

Training & Development Division Head

7

Experience

Good communicaon skills, movated, self-starter, self-starter, good team player, easy learner

Good communicaon skill, movated, self-start self-starter er,, good team player, player, persuasive skill, easy learner

Good communicaon skills, movated, self-starter, self-starter, good team player, player, persuasive skill, easy learner

Good communicaon skills, movated, self-starter, self-starter, good team player, player, persuasive skill, easy learner

 DUTY STATION: Posion No. 1 – 6 Addis Ababa



 

: Posion No. 7 ,Holeta Plant Site

 Employment Type: Permanent

 

SALARY: Negoable and Aracve

 NUMBER REQUIRED: One for each posion. Interested Interested applicants who full the above requirements requirements can submit their



applicaon, CV and non- returnable copies of their tesmonials in person to HRM & Admin Department located at Wello Sefer, Ethio-China Friendship Street, new building 8th oor, in front of Wengelawit Building within 10 working days aer this vacancy announcement. HABESHA CEMENT SHARE COMPANY Tel. 0966-21-5532

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

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አድማስ ዩኒቨርስቲ  ADMAS UNIVERSITY  EXTERNAL VACANCY ANNOUNCEMENT The University would like to invite qualified and skilled applicants to the following vacant posts No No..

POST PO STS S

EDUC ED UCA ATI TION ONAL AL QUALIFICATION

1 Campus Deans

2

3

A ca ca de de m mii c De Dep pa rtm rtme en ntt Head for: - Business Management - Accounng & Finance - Markeng Management - Computer Science

MA, MBA or MSc and above in their respecve elds

Inst ru ructors for : - Business Management - Accounng & Finance - Markeng Management - Computer Science

MA/MBA/MSC, and above in their respecve elds

4

Head, Training & Consultancy

5 Head, Markeng and Corporate Communicaon

6

Head, Qualit Assurance Oce

7 Head, Administraon and Finance Oce

8

Head, Research, Promoon & Coordinaon oce

9

 

Ocers Registrar Library Assistant for Administraon oce - ICT support ocer

-

10

MA, MBA or MSc and above in any discipline preferably in business and educaon elds

TVET Trainers: - Accounng - Management - IT - HRM

MA/MSc degree in an led preferabl in business related elds

BA and above in markeng or related elds

BA or above in Educaon or relat related ed elds

REQUIRED EXPERIENCE AND ESSENTIAL SKILLS

- Five years experience in an academic instuon as a head of a college, faculty or department. - Knowledge of academic rules, regulaons and pracces. - Demonstrated ability in managing and coordinang students and faculty sta. - Aenve to details. - Good working Knowledge of computer applicaons - Two year's relevant experience in educaon sector - Working Knowledge of academic rules and regularegulaons. - Good working Knowledge of computer applicaons

- Two years of teaching experience at terary level. - Good comm command and of wrien and spoke spoken n English. - Commied to be involved in research and various student support services.

- Three years proven experience in related posions. - Proven experse in conducng research and training - Extensive understanding of the contemporary indusindustry and business operaons and pracces. - Ability to organise and work with team of experts. - Good working Knowledge of computer applicaons - Three year's experience in the relevant posion - Capable of handling m multude ultude promoonal promoonal acvies acvies of a company - Capable of wring and eding press release, bro bro-chures, and other publicaons. - Good media relaons - Capable of conducng market research and analysis - Good working Knowledge of computer applicaon - Two years of direct experience in overall provision of Quality Assurance. Assurance. - Good employee relaons - Good K Knowledge nowledge of developing and updang working documents . - Good working Knowledge of computer applicaons

BA or above

- Three years of direct experience in overall provision of

in Accounng, Management or related elds

Administraon, Administr aon, Financelevel. and HR Services, policies and programs at corporate - Good employee relaons - Good Knowledge of developing and updang Guidelines, procedures and communicang. - Good working Knowledge of computer applicaon

enMA/ MSC holder in an - Three years relevant experience which involves engagement in studies coordinaon and Promoon of eld preferabl in Social research, values and results Science elds - Prociency in relevant computer applicaon soware - Strong analycal skills BA/ BSc and above in their respecve elds Or related elds

BA/ BSc and above in their respecve elds

- Two year's and above relevant experience. - Funconal experse in their respecve elds. - Good working Knowledge of computer applicaons

No. REQUIRED

PLACE OF WORK

6

Addis Ababa (Mekanissa and at other campuses)

Mekele Campus Bishou Campus

16

Addis Ababa ( Mekanissa and and at other campuses) Mekele Campus Bishou Campus

40  

Addis Ababa ( Mekanissa and and at other campuses) Mekele Campus Bishou Campus

2

Addis Ababa Mekanissa Campus

Mekele Campus

2

Addis Ababa Mekanissa Campus

Mekele Campus

2

Addis Ababa Mekanissa Campus

Mekele Campus Addis Ababa Mekanissa 2

Campus

Mekele Campus

2

Addis Ababa Mekanissa Campus Mekele Campus

Two for Each posion

Addis Ababa Mekanissa Campus Mekele Campus

- Two years of teaching experience at terary level. - Good command of wrien and spoken English. - Commied to be involved in research and various stustudent support services - COC cered in all levels

20  

Addis Ababa (Mekanissa and at other campuses) Mekele Campus Bishou Campus

Salar: Negoable and Arac Aracve ve Interested applicants applicants fullling the above requirements can submit their CV and cop of non-returnable credenals or tesmonials within 15 das of this announcement to the following address:

Admas Universit Oce of the President Olmpia, behind Dembel Cit Center P. O. Box 2618 Tele. 011 5 51 40 65/ 011 5 50 88 08 Addis Ababa

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

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     󟿽 󟿽 􏿽󿿽� 􏿽󿿽�!!

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

Independent News & Media Plc

Bid for Sale of Different Materials

United Naons Development Programme (UNDP) would like to sele the following materials on compeve bidding. Interested bidders are therefore invited to submit their bids as per the following instrucons: 1. Prospecve Bidders can inspect the materials 10:00am to 4:00pm at UNDP Regional Service Centre for Africa (RSCA) compound from July 4, 2016 to Aug 3, 2016. RSCA oce is located in front of Dembel City, beside/near Deluxe Furniture. Bidders can collect list of materials and bid submission form from the RSCA. 2. The last day of submission of bids is 4 Aug 2016. Bid documents shall be submied with CPO bid bond of ETB 1,000.00 (One Thousand Birr). CPOs will be returned to unsuccessful bidders. 3. Bids will be submied on a lot by lot basis. It is not allowed to bid for part of a lot. Bidders can bid for all or onl y for the lots they are interested to bid. 4. Materials will be sold in state of their current condions, as is. UNDP will not take any responsibility for any claims by bidders aer transfer of materials to bid winners. 5. Bid winners are required required to pay the the full amount of the winning price and collect the respecve lot/s within a week aer they are noed. 6. UNDP reserves the right to appropriate bid securies, if unsuccessful b idders fail to collect their bid securies within six months aer nocaon of bid result. 7. Bids will be submied before or on 4 Aug 2016, 3pm at UNDP Ethiopia oce in ECA compound, Congo Building 6th Flour. Late bids will not be received. 8. UNDP reserves the right right to reject an any y or all bids. Lot Item descripon Lot 1 Electrical materials Lot 2 Building materials Lot 3 Furniture Lot 4 Solar panels Lot 5 Epoxy coang Lot 6 Polycarbonate sheets (Lexan Sh Sheets)

IMMEDIATE VACANCY  JOB POS POSITIO ITION: N:

ASSIGN MENT EDITOR

He or she must be able to supervise and train reporters, handle the pressure of daily deadlines, and lead by example with truly topnotch wring and reporng skills. Applicants must have the ability to develop excellent sources and produce groundbreaking stories about the business sector, together with the reporters they work with. The successful candidate must be a self-starter with the ability to react to and cover breaking news and also idenfy trends and write diverse features from business arena. The ideal candidate for this posion will possess a working knowledge of both public and business sectors and have the ability to write daily reports and edit, if necessary, weekly news stories for and about the economies of Ethiopia and other countries in the region. The work requires the ability to le weekly story budgets and give editors advance noces of stories in progress. The ideal candidate will have excellent organisaonal skills and the ability to meet strict deadlines and work in a fast paced entrepreneurial environment. Three to ve years of experience in wring for newsleers or economic journals or working in a media environment is preferred but not required. JOB POSITIO N

COPY EDITOR

The successful applicant should be a native English speaker ECA Congo Building ,6th oor, Africa Hall P.O. Box 5580, Tel : +251115444352, Fax+251115514599 Home Page: www.et.undp.or www.et.undp.org g

with academic background or experience in literature. He/she is required to be a fastidious fact checker and guarantee no story goes up without being 100pc factually correct and 100pc original content. Ensure all content is written in (Addis) Fortune house style, with wit and personality. Write headlines, sub heads, blurbs, and stand firsts for the newspaper and approve all texts and credits before sign off by the Editor-in-Chie Editor-in-Chief. f. GRAPHIC DESIGNERS

Recruitment of Individual National Consultant on Programme Development: Enhancing National Capacities for Livestock Sector Development and Transformation, Procurement Reference Reference no. ETH/IC/2016/049 ETH/IC/2016/049 UNDP seeks the services of a reputable Naonal Consultant with proven track record of relevant experience to do an assignment as a Naonal Consultant on Programme Development: Enhancing Naonal Capacies for Livestock Sector Development and Transformaon. In Transformaon.  In this public procurement noce, all competent individuals which sasfy the minimum requirements stated in the ToR are hereby kindly invited to submit proposals. Hence, both the respecve Technical and Financial Proposals shall be submied on or before Jul 13, 2016  2016  at 5:30pm (UTC+03:00) Addis Ababa/Nairobi Time Zone b CoB in CoB  in the following address: Interested individuals for the caponed service can also download the Interested IC Proposal Submission Form and ToR (in word le and PDF) from the following UNDP Procurement Noces links: Procurement Noces - Adversement on Recruitment of Naonal Consultant on Programme Development: Enhancing Naonal Capacies for Livestock Sector Development and Transformaon ETH/IC/2016/049 UNDP Procurement Noces links: hp://procurement hp://procur ement-noces.undp.org/vie -noces.undp.org/view_noce.cfm?no w_noce.cfm?noce_ ce_ id=30914 Your proposal must bedas. expressed in English and shall be valid for a minimum period of 120 das . It shall remain your responsibility to ensure that your proposal reaches the address above on or before the deadline. Proposals that are received aer the deadline shall not be considered for evaluaon.

We are looking for graphic designers to join our creative team. Responsibilities include but are not limited to creative designs and layouts of the newspaper and marketing materials for print, online, banners, and live events. Applicants must have excellent typographic sense and be able to express abstract concepts graphically in a dynamic manner manner.. Candidates must have two years of graphic design and front-end online design experience, strong organisational skills, and a working knowledge of In Design, Adobe Page Maker, Photoshop and lllustrator CS. JOB POSITION

REPORTERS

We are searching for candidates who are graduates of law, political science, journalism, economics, finance, or literature from recognised universities. The ideal candidate should handle the pressures of daily deadlines, not be intimidated by workload pressure and stress, and have exceptional writing and reporting skills. Applicants must be well-grounded in news and have the ability to uncover stories about the economic and business sectors. Candidates must be able to write five originally sourced news stories each week, in addition to an unspecified number of shorter, non-reported daily briefs. Experience is preferred but is not a strict requirement. Some travel for coverage may be required.

Independent News & Media Plc Tegene Teg ene Building, 7th Floor  Floor.. Next to Global Hotel on Sierra Leone Street (Debre Zeit Road) Tel: 251-11-416-3020 Fax: 251-11-416-3039 P.O. Box: 259, Code 1110, Addis Abeba, Ethiopia

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

Federal Transport Transport  to See Appeal from Four Bidders

 EMOTIONS

 

R A D A R

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Women's Union Gives Million Br Insurance Insurance Coverage The Sustainable Women's Savings &

The Ethiopian Road Transport Credit Cooperatives Union has given  Authority is to re vamp an evaluation insurance coverage of 1.4 million Br to process for the purchase of biometric its 643 members. Life insurance, funeral driver's licences that was kept on insurance, maternity insurance, retiree hold for the past six months following insurance and financial insurance are the types of insurance covered by the Union. bidders complaints over the time the  whole evalua tion took to come up Beside the insurance coverage, the  with the prelim inary results . Union gave credit of six million Birr to 280 women who needed to pay a fee for The Authority has formed a new their for their condominium housing. com mitt ee Of those women, 50pc had started to comprising sustain themselves by close renting the Union. house, experts from its according to sources to the staff following a  An ot he r 22 3 wo me n we re al so failed attempt to beneficiaries of the Union's credit facility. include similar They received credit totaling 12 million Br.    u expertise from     b Sixty two per cent of those women started    a    g    i    T the Ministry of new businesses while the others used the    w    e Communication    m credit to address housing problems.    e    r    e & Information    G The Union was established in 2005/6 by   :    y     b Technology. 12 cooperatives and 30,000 members    o    t    o     h  with capital capital of 100,000 100,000 Br. Br. Current Currently, ly, the    P  After almost one year of back and cooperatives have 68 unions and more forth, the purchasing process of the Habte Hadush, general manager of Mesfin Industrial Engineering Plc (left), in discussion with Azeb Mesfin, the than 14,000 individual members with paid system came under scrutiny following CEO of EFFORT (right). Looking on from behind are Mebrhatu Meles (PhD), state minister for Industry (centre) up capital reaching close to 11 million mill ion Br. the Authority's announcement of the and during the launching ceremony of Mesfin Industrial Engineering Peugeot Automobile Assembly factory in companies that had passed and failed Wikro. Peugeot, is the first of its European competitors to enter the Ethiopian market, making Mesfin Industrial Engineering the first Ethiopian company to assemble European cars. Despite the good news, side issues seem the evaluation.  to drive hyper-emotions hyper-emotions ooff managers managers Only two bidders, Supercom Ltd from Israel, and the Moroccan M2M Group  FRIENDS  were name d as ha ving pass ed to th e next stages. Ethiopian Airlines acquired the first Airbus Now with the new committee in place, in Africa, an A350-900 aircraft, on June the appeal by four bidders Safran 29, 2016. The aircraft was purchased from AerCap Holdings, a company with Morpho, a French multinational company; Veridos, a joint venture approximately 1,670 owned, managed or on order aircraft in its portfolio. of two German companies Giesecke The A350 was originally conceived in & Deverient and Bundesdruckerei, 2004. It provides exceptional comfort Mühlbauer Group and Madras applying modern technology for a unique Security Printers Ltd, an Indian passenger experience. company are undergoing evaluation.

Ethiopian  

Pioneers Airbus  Service  Servi ce in in Africa Africa

Enterprise, Horticulturalists  Sign 8.5m Br Intervention Project  Enterprise Partnership, 9EP, a social enterprise established in 2013 to create more jobs for people living in poverty signed an agreement with Ethiopian Horticultural Producers and Exporters Association (EHPEA) to contribute 8.5 million Br to finance an interventio intervention n that enables commercial farms to increase exports of fruits and vegetables. Implementation of the project will take place within within period of one year and targets generation of over 3,000 jobs.When the intervention results in the export of greater volumes of fruits and vegetables, productive farms will tend to hire more labour. The design of Commercial Farms' Export Facilitation Intervention was discussed by two studies undertaken by 9EP to identify constraints and opportunities in the sector, that has been daunted by commercial farms' limited market linkages. Areas of intervention include creating broader market linkage between commercial farms and importers and enabling farmers to meet standardised quality

 Ethiopian  is the second airline after Singapore Airlines to own an A350XWB in the Star Alliance Network, an alliance of 28 members established in 1997.    u     b    a The country's flag carrier owns the    g    i    T    w majority share of the pan-African    e    m passenger and cargo network, operating    e    r    e    G the youngest and most modern fleet to   :    y     b 92 international destinations across five    o    t    o     h continents. It has registered an average    P growth of 25pc over the past seven years.  Arguably the greatest greatest friend friend a man can have is a dog. Apparent Apparently ly dogs forge friendships friendships with each ot other her too The Airline is currently implementing a even to the point of sharing a sleeping space on the sidewalks of Ambassador. Peter McWilliams sums it up as  follows: "Be willing willing to be uncomfortable. uncomfortable. Be co comfortable mfortable being uncomfort uncomfortable. able. It ma mayy get tough, but it's it's a small 15-year strategic plan called Vision 2025 price to pay for living the dream." These guys seem quite comfortable though, evoking yet another saying - "Let that will see it become the leading aviation group in Africa with seven business centres. sleeping dogs lie."

 BREAKFAST 

Nokia to Renew Presence in Ethiopia  with New Office

Nokia celebrated the opening of its new office in Addis Ababa on June 30, 2016. Dedicated to network infrastructure Nokia is looking for business partners to build networks and is offering ultra-fast broadband services in the mobile and fixed broadband networks market to enrich its presence in Ethiopia once again. Upon celebration of its comeback office inauguration, Daniel Jaeger, Nokia's head of market unit Central, East and West  Africa announced announced the ccompany's ompany's interest in operating in Ethiopia's telecoms infrastructure market with mobile networks.    u     b The company provides network solutions,    a    g    i    T broadband for fixed networks which    w    e allows customers to use Wi-Fi at home,    m    e    r    e optical routers that transport data at the    G    y   :     b speed of 400GB per second and builds requirements,, among others. requirements    o    t The social enterprise facilitates    o faster networks.     h    P market development in six sectors, ''Despite Nokia’s intent to be involved in ob serving the annual fast of Ramadan, Ramadan , one of the country's network infrastructure,'' namely, textiles, livestock, fruits and Each year, Muslims spend the ninth month of the Islamic calendar observing "pillars" of Islam. Muslims who are physica physically lly able are required required to fast each day of the entire month, from CEO of ethio telecom, Andualem Admassie  veg etab les, agr o-in dus try and the  the five "pillars" development of small and medium sunrise to sunset. The evenings are spent enjoying family and community meals, engaging in prayer and spiritual states that the enterprise has no plan for new deals. enterprises. reflection, and reading from the Quran . Having fruits at the dinner table is a customary way to break the fast.

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

The Management and Employees of   Derba MIDROC wish you a Happy Eid Al-fitr

Derba Drilling DERBA CEMENT

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

Movie Movie Review Review COMING SOON ICE AGE: COLLISION COURSE

July 22

1

 $73.2M Weekly Revenue

Qeyaye Qenbetoch ( Red Red Leaves) is a film about an

Ethiopian community that practices an ancient form of Judaism and now forms a sizeable community in Israel. For this bare, brave, bold debut film that shocks and illuminates, Fortune’s in-house film critic, Christian Tesfaye, awards an almost full sky of nine stars out of 10.

FINDING DORY 

2

 $41.6M Weekly Revenue

INDEPENDENCE DAY: RESURGENCE

3

 $18.4M Weekly Revenue

CENTRAL INTELLIGENCE

Half a lifetime ago, the Ethiopian National National Theatre was inaugurated to coincide with the King of Kings’ Silver Jubilee. The theatre did not look like much from the outside but the interior, even several decades on, makes the jaw slacken. But then again, Emperor Haile Selassie Iwas a very hard person to impress. It is rumoured that he found the large lion statue in front of

4

 $16.7M Weekly Revenue

the theatre mediocre because it was not plausible as a lion (the unique design has since become a landmark in Addis). By CHRISTIAN TESFAyE  SPECIAL TO ForTunE Nonetheless, even such an imposing figure as the Emperor could not have denied that the theatre itself was exceptional. Other internationally famous great halls may be larger and brighter, but this one, despite its immodest beginnings, is testament to a calm, timeless architectural wizardry. Fast forward to 2016 - I sat in the same theatre for a film screening. The attendance was replete, mostly because Eshetu, who plays the lead role in the the screen. I am not sure if this is because arrived in Israel was to help his relatives it was free to get in and there were free film. To western audiences, he is the they do not take cinema seriously or mere make it to the Promised Land. Thus, either delicacies in the anteroom. All of this, in most popular Ethiopian actor, as he ones self-denial. consciously or unconsciously, he holds expectation of a unique Israeli-Ethiopian  worked  worked in Shaft in AAfrica frica, a sequel to one  Qeyaye Qenbetoch  could have easily this against them; he demands utmost movie,  Qeya ye Qenbe toch , that was of the most acclaimed “Blaxploitation” been made right here in Ethiopia. The respect and obedience because without released two years ago. films of all time. His performance in this setting itself is uncannily Third World. him they would still be in Ethiopia. The film tells the story of an elderly film is wistful. Not for a second does he The weather is sunny, but not sunny in member of the  Bete Israel   community look like he is acting, but being. The that bright, clean, beautiful manner as in But what is his family to do? Live by the old man’s 19th Century rules and regulations? ( Falasha, as they are known in Ethiopia) strength in his depiction of Misganaw lies  western movies; sunny sunny in a sticky, dus dusty, ty, called Misganaw. For decades now he in his mannerisms - the looks he gives, suffocating sort of way. The houses are There are two audiences’ perspectives has lived in Israel, and all that time as an the way he walks and violently retorts. It all cramped and inadequately lit. Anyone on the film, one that views Misganaw as a poor old man maltreated by those that immigrant. Despite a change of geography is almost as if he was playing himself, and owe a lifetime debt to him, and the second and culture, and as a result of living is being honest about it. But then again, that sees him as the source of all the pain amongst a protected Ethiopian community, after the film ended, Eshetu gave a small and heartache that exists around him. In and his own conservative attitudes, speech on stage, and sounded modest, a single day he might get into a heated he remains intrinsically Ethiopian. On tolerant, nothing like the character he has argument with five different people and the anniversary of his wife’s death, he just enlivened. This is the mark of a great eyaye Qenbetoch it will never occur to him that maybe, just announces to his large family that he has actor, and the performance, the greatest maybe, the problem emanates from him. sold his house and that he plans to spend for any actor in any Ethiopian movie. has that raw He is paranoid - he thinks that everyone the rest of his life commuting between his Equally important to the film’s primal relatives’ houses; cuing the film to unfold intensity is writer/director Bazi Gete. He is overstated passion. is out to get him. And, in a way, they are. Because he is old and his way of thinking the secrets and woes of the family’s life. himself part of Bete Israel  Israel  and  and lived most  It is not apologetic, apologetic, has aged, time and society have simply First, Misganaw visits his brother. A form of his life in an Ethiopian community in stopped accommodating him. of celebration ensues; there is laughter Israel. This is his debut movie and it is and its cinéma Misganaw is Ethiopia’s first true Qenbetoch ch has that raw and for an instance, there appears to be obvious - Qeyaye Qenbeto vérité … is visually antihero. We never like him, but his life happiness too, but it does not last long. overstated passion. It is not apologetic, It seems that he does not approve of his and its cinéma vérité, a style of filmis fascinating, so we follow his journey, battering.  youngest daughter’s, according to him, making with simple equipment, is visually probably hoping to figure out just what racially inferior love interest. He pushes battering. Gete might not have set foot in  went wrong. wrong. In both the two two most highly her away by calling her all kinds of names. Ethiopia, but has obviously spent a lot acclaimed Ethiopian movies – Teza and Later, when he finds out that most of the of time around Ethiopians and observed  Lamb – we do not really get to see the family sides with the daughter ’s choice, he their typical notable shortcomings - making his way into the theatre while the Ethiopian society criticised but in the leaves his brother’s house for that of his overwhelming secretiveness, endless film is in progress will never guess it was most basic of ways; they may touch on the son. But he does not find any consolation obedience and catastrophic sexual set anywhere but in Ethiopia. faults of backwardness, but say naught of there either - he discovers that his son repression. More importantly, it is the Ethiopian modern society’s deficiencies. Saying so cheats on his wife. This enrages Misganaw, mindset that is palpable to those who especially in the bare, brave, bold manner  while it never oc occurs curs to him that his son’s son’s Most audiences at the objectively. Misgana Misganaw w is above all this film does - is almost considered miscalculated the film. Theirscreening reactions  watch objectively. lack of respect for his wife might be  were largel y based on what the film a proud man; if he has phlegm obviously taboo. Hopefully, this perceptive film sets caused by his very own obvious dislike unintentionally pretends to be - the life situated right on his nose, he will punish a trend toward more honest, probing of women. of immigrants – and that could not be the first person to point it out to him. He Ethiopian films that can shock and The only person from the cast and further from the truth. It is incredible how loves his family sure, but it is doubtful illuminate. But it is doubtful;  Qeyaye crew that showed up for the Ethiopian bad people are at making correlations if he loves them more than the idea of  Qenbetoch does not even have a release screening was esteemed actor Debebe between their own lives and what is on family. The first thing he did when he date for Ethiopia.

FILM REVIEW |

THE SHALLOWS

5

 $7.8M Weekly Revenue

 (Red Leaves) Qeyaye Qenbetoch  (Red  Strips away Family Family V Veil eil

FREE STATE OF JONES

6

 $7.7M Weekly Revenue

THE CONJURING 2

7

 $5.7M Weekly Revenue

NOW YOU SEE ME 2

8

 $2.5M Weekly Revenue

Q

 X-MEN: APOCALYPSE APOCALYPSE

9

 $2.4M Weekly Revenue

TEENAGE MUTANT NINJA TURTLES: OUT OF THE SHADOWS

10

 $2.1M Weekly Revenue

 ALICE THROUGH THE LOOKING GLASS

Coming Soon The Infiltrator July 15

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

 This column gives advice about new technologies ogies as well as gadgets and provides information on how to use new prod products ucts from the digital world. Any questions on the day-to-day operation of one's computer can be addressed by emailing Dereje who is willing to advise or assist readers whenever possible.

P AG E  5 7

 with Dereje Letiyebelu

email: [email protected].

Google Glass Helps Autistic Children Like many autistic children, Julian Brown,10, has trouble reading emotions in people's faces, a major challenge for people with the neurological disorder. Now the boy is getting help from "autism glass" - an experimental device that records and analyses faces in real time and alerts him to the emotions they are expressing. The facial recognition software was developed at Stanford University and runs on Google Glass, a computerised headset  with a front-facing camera and a tiny display just above the right eye.  Julian is one of aabout bout 100 autistic autistic childre childrenn participating in a Stanford study to see if "autism glass" therapy can improve their ability to interpret facial expressions. "We had the idea of basically creating a This machine helps with the emotions, you behavioural aide that would recognise know, recognising them, Julian said. the expressions and faces and then give He wears the device each day for three social cues according to those," said Voss, 20-minute sessions when he interacts  who was partly partly inspired inspired by a co cousin usin wh whoo  with family members members fface-t ace-to-fac o-facee - talkin talking, g, playing games, and eating. The programme has autism. runs on a smartphone, which records the sessions.  When the device's camera detects an emotion such as happiness or sadness,  Julian sees sees the word word "happy" "happy" or "sad" or a corresponding emoji flash on the glass display. The device also tests his ability to read facial expressions. "The autism glass programme is meant to teach children with autism how to understand what a face is telling them.  And we believe that when that happens they will become more socially engaged," said Dennis Wall, who directs the Stanford School of Medicine's Wall Lab, which is running the study. Stanford student Catalin Voss and researcher Nick Haber developed the technology to track faces and detect emotions in a wide range of people and settings.

Google's only involvement was that it Brain Power, a Cambridge, Massachusettsprovided about 35 Google Glass devices based start-up, is also developing Google to Stanford. The Silicon Valley tech giant Glass-based applications to help children autism improve improve their social social skill skills. s. stopped producing the headset last year  with autism after it failed to gain traction, but the device  Aut is m adv oca tes are exc it ed th at found new life among medical researchers. researchers are developing technologies

 Seven-Portt USB Chargi  Seven-Por Charging ng Station The Satechi 7-Port USB Charging Station Dock would be the perfect solution for users in need of a device in order to quickly and efficiently charge multiple smart devices simultaneously, without the clutter of  wires. It boasts of a tr trio io of 2.4A ports and a qquartet uartet of 1A ports, which means this dock can power powe r Android and iOS smartphones and tablets at the same time. The 7-Port USB Charging Dock Station boasts a compact (7.4” x 5.5”), space-saving form factor to reduce clutter and avoid taking up valuable desk and counter top space. The user-friendly dock will also be able to charge smartphones and tablets while they are still in their protective cases. Simply hook up the station to a wall outlet, load in up to seven devices, press the power button, and the blue LED light will then let you know that it is powered on, and ready to charge.

to help the estimated one in 68 American children diagnosed with autism spectrum disorder. Glass and wearable technology are the future. They are going to play a pivotal role in how we understand, manage and diagnose disorders like autism, said Robert Ring, chief science officer at  Autism  Autis m Speaks. Speaks. Currently, many autistic children learn to read facial expressions by working  with therapists therapists who use flashcards flashcards with faces expressing different emotions. The Stanford team hopes autism glass can provide a convenient, affordable therapy that families can do at home. "Kids with autism are not getting enough of the care that they need for as long as they need it, and we need to fix the problem,"  Wall said. said. If the study shows positive results, the technology could become commercially available within a couple years, Wall said.

Elos Touch Advance The latest generation of at-home laser hair removal, the Elos Touch Advance,  will feature 500,000 pulses, making it the company’s most powerful personal laser hair removal machine. Users are able to enjoy the same smooth, permanent effect as professional laser hair removal, all within the confines and privacy of their own home.  You will be able to make use of the Elos Touch Advance on the entire body. On offer is a reduction of at least 89pc in hair after six weeks to seven weeks of treatments, all the while being suitable for all skin tones and hair colours.

LI-FI - Economical, Eco-friendly Alternative get this technology inside various devices

of 10 years to 15 years for the technology

 Your options for communicating in the

identify the senders of your messages

lighting grids. In order to make amind new that ideamight is nurtured someone's changeinthe way we and this technology widely adaptable, it is function. One such groundbreaking idea necessary to compress the dongle into popped into the mind of the brilliant an ASIC (Application Specific Integrated Professor Harald Haas of the University Circuit) or SoC (System on a Chip), to of Edinburg, UK, back in 2003. His idea make it easily incorporated into various  was to use Light Emitting Diodes as a devices like smartphones, laptops, medium to transfer data from one system tablets, accessories and many more. to another. This topic became widely  Advantages of Adopting LI-FI popular after his TED Talk in 2011. - As light does not penetrate through The question of the hour is what exactly  walls, this technology allows the users is LI FI? to create secure networks with much LI-FI is a shorthand representation for higher security. Light Fidelity. - The strength and efficiency of the In simple terms, it is a possible alternative network can be enhanced with increasing to Wi-Fi. While Wi-Fi uses radio signals the number of light sources.  wirelessly, LI-FI is the concept of using - Once these sensors and dongles  visible Light Spectrum. become more adaptable, we can use LI-FI works with the LED lights that are a low cost, environmentally friendly turned into wireless transmitters. To technology in our everyday lives. receive data, we need a dongle of sorts that acts like a modem. This dongle can - LI-FI can boost its capacity to transfer be connected to a laptop or a tablet data roughly 100 times faster than Wi-Fi through USB Ports. There is a sensor in technology by the usage of laser LEDs. the modem that catches the light coming - The LI-FI network allows users to roam around the room or anywhere in the down,the andsignal an infrared that installed lighting grid. sends back to component the light source. The LED Lights have a networking - LI-FI adoption can reduce the strain component that allow multiple users to on the existing networks and free the connect to a single light source and give bandwidth for outdoors. the ability to move from one light source LI-FI might seem a better option than to another without losing the connection. existing Wi-Fi system, but it is actually The long term aim of the innovator is to complimentary. It would take a minimum

to be incorporated into our daily lives. Fantastic Features of iOS 10 The announcement of every new version of the iOS brings with it a set of exciting new features that expand and transform  what the iPhone and iPod touch can do. That is certainly true of iOS 10. Revealed by Tim Cook at Apple's  Wor ldw ide Dev elo per s Con fer enc e (WWDC) in San Francisco, the new  versi on of the opera ting syste m that runs on the iPhone will not actually be released until the fall. Here are the features to get excited about while we  wait. - Revamped Apple Music The Music app that comes with iOS, and the Apple Music streaming platform, are major long-term successes for Apple, especially Apple Music, which racked up over 15 million paying customers in under two years. That success has been in spite of many complaints about the app's overly complex and confusing

Messages Sure,video, you could sendapp textsare andlimited. photos and and then audio clips, but Messages did not have the kind of fun features found in other chat apps — until iOS 10. Wi th this release, Messages gains all kinds of cool ways to communicate more clearly. There are stickers and visual effects that can be added to texts, and messages to make them look louder; recipients can swipe them for a dramatic revelation including suggestions for words that can be replaced by emoji (which are now three times bigger). - HomeKit App Most iPhone users have never heard of HomeKit since it is not used in many products. However, it could change their lives. HomeKit is Apple's platform for smart homes that connect appliances, HVAC, and more to a single network and allows them to be controlled from an app. Until now, there has not been a good app to manage all HomeKit-compatible devices. This app  will not be totally useful until there are more HomeKit-compatible devices and more people have them in their homes, but this is a big start towards making  your home smarter. - Voicemail Transcriptions  When Apple introd uced the iPhone,  Vis ual Voic ema il mea nt you cou ld

and them out of order. In iOS into 10, everyplay voicemail is also transcribed text so you do not have to listen to it at all if you do not want to. This is a really helpful feature for the people who will use it.

 With advances in technology, every day

interface. Userswill of iOS unhappy with that interface be 10 happy to learn that it is been overhauled. Now there is an attractive new design, it also adds song lyrics and removes the superfluous Connect feature that lets users follow artists. - New Ways to Communicate in iMessage

Splice

DropSend  You can now send large files via email freely and securely with DropSend. They offer 256 AESSecurity Encryption and you do not have to install software. Fill out the form with your contact details and message. Click the Select a File button to choose the file you want to send. Next, click the green Send Your File button, and away your message and file go. Check the FAQ or Help page if you have any problems or questions.  http://www.dropsend.com  http://www.drops end.com

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

P AG E  5 9

Syndication articles from

The Financial Times [2013]. All Rights Reserved. Not to be redistributed copied or modified in anyway.(The client) is solely responsible for providing this translated content and the Financial Times Limited does not accept any Liability for the accuracy or qua lity of the translation.

Tanzania's new president shakes up east Africa's 'sleeping giant'

David Pilling and John Aglionby - Dar es Salaam

I

n a crowded street in Dar es Salaam, where tailors and scrap-iron merchants  vie for spac e with vege tabl e hawkers, barber shops and butchers displaying slabs of meat, one incantation is on everybody's lips: "Magufuli". Last October, to virtually everyone's surprise, John Pombe Magufuli, a less-than-glamorous cabinet member who had done two stints as public works minister, became president of Tanzania. To get there he beat better-connected better-connected rivals from the ruling Chama Cha Mapinduzi "Party of the Revolution",  wh ic h in on e fo rm or an ot he r has ruled the east African nation since independence. Now almost everyone, especially the poor, are putting their faith in a new leader so reputed for getting things done he is known as "the Bulldozer". Too often in Africa, exciting new leaders with a radical agenda a nd s uppos e dl y i m pe c c a bl e moral credentials have started off promisingly, only to ossify into ineffective autocrats. That said, Mr Magufuli, 56, embarking on his first five-year term, is creating a buzz of expectation that at last Tanzania has found a leader capable of awakening the "sleeping giant" of east Africa, one with huge, largely unexploited, gas and mineral resources. "He walks the talk," says Samuel  Wa n gw e, p r in c i p al re se a rc h

The presidency commands huge constitutional power - and Mr Magufuli has not been afraid to use it. He has waltzed into government offices and fired people on the spot. He is even rumoured, like a Chinese emperor, to travel in disguise in order to sniff out malfeasance. He pressed ahead with a highly flawed electoral process in Zanzibar, a semi-autonomous island, which deprived the Zanzibari opposition of what looked like victory. Nor has he been shy of using sweeping cyber crime legislation to silence critics. This month, a court sentenced a man to three years in jail for insulting the president on Facebook. Mr Magufuli, the son of a peasant farmer, and a chemical engineer by profession, indicated what kind of leader he would be from the getgo. He scrapped normally lavish independence day celebrations and, borrowing a stunt from Narendra Modi, India's prime minister, took to the streets with a broom, declaring he would spend the money saved on sanitation. He has clamped down on foreign travel for officials, personally vetting all trips. His predecessor, Jakaya Kikwete, was so fond of foreign tours he was christened Vasco da Gama, after the Portuguese explorer. In his first budget, presented this month, he pledged 40 per cent of spending to development and infrastructure, up from 25

the economy, according to official statistics, grow at an average of 7 per cent for 15 years. That is particularly true of the countryside, where more than two-thirds of Tanzanians Tanzanians live, many in severe poverty. Farming output has grown only 3 or 4 per cent a year, barely enough to keep up with a blistering birth rate, which could see a population of 55m, the fourth-largest in sub-Saharan Africa, double within 30 years.

associate the Economicin andDar Social Researchat Foundation es Salaam. "When he says something, he follows through. He's not a liar."

per He will propoorcent. agenda, he pay says,forbyhis cutting current expenditure, purging the government of extravagance - even

Mr Magufuli's argue that he must firstsupporters use his authority to take on a system corroded by corruption and complacency before

he can rebuild institutions. But even advocates worry about his tendencies to run government by fiat and to take snap decisions  without, they say, thinki ng t hrough the consequences.  A crackdown on illicit sugar imports has led to shortages. Last week, his government demanded, with no consultation, that foreign-owned telecoms companies list on the local stock exchange within six months. One lawyer accused the president of hypocrisy, saying he talked about fighting corruption  whi le enc our agi ng the pol ice to steal the tyres off illegally parked  vehicles.

the serving of tea and coffee in offices has been banned - and squeezing more revenue from private companies and high-flying elites. "All over the world, people speak about Magufuli," says Othman Gendaiki, 76, lowering himself stiffly on to a stone step by the side of an open sewer in Msasani, a Dar es Salaam neighbourhood. "To break the chains of poverty. That's what he's trying to do." Many Tanzanians have been left out of an economic boom that has seen

 All over the world, people speak about  Magufuli ...To break the chains of  poverty. That's what he's trying to do.

Naturally, Mr Magufuli has made enemies. In the State House, as a precaution, he is said to eat only food prepared by his wife. "People believe sincerely that there's a new sheriff in town," says Salim  Ah me d Sa li m, a fo rm er pr im e minister. "But I worry. I think at some point President Magufuli will have to review his methods. He cannot be a one-man show." Back in Msasani, there are few such reservations. "He's like a soldier," says Paulo Shiwala, 40, a hospital technician. "When you are a soldier  you have to use your tone to ne of voice, not smiling. When you are smiling, people are stealing." He is hopeful the new president will get the economy working for the poor and wants to set his wife up in Godhewishes, I can getbusiness. a café for "If her," says. "Maybe if Magufuli can produce a miracle, then we can get it."

Dubai hotels welcome African and Chinese middle-class tourists JUDITH EVANS

D

ubai is known for taking that market, a need for more three- Dragon Mart has proved so popular hospitality to excess: and four-star hotels and resorts," that it was extended last year to the world's tallest hotel, says Ali Rashid Lootah, chairman more than double its space, and Mr rooms costing $24,000 of Nakheel, a state-owned property Lootah plans another hotel there. a night, replicas of Arabian and company. "Our focus now is on the Many nationalities visit Dragon Russian palaces. But developers more affordable bracket," he adds. Mart, but the expansion is founded in the emirate are turning their His company opened the first of partly on hopes for a steep increase attention to travellers on more 10 planned hotels and resorts in in numbers of Chinese visitors, of modest budgets in an attempt to February, a three-star Ibis Styles  who m 450 ,00 0 pas sed se d thr oug h lure the growing middle classes of hotel linked to Dragon Mart - a Dubai in 2015. This was 29 per China and Africa to shop, trade and shopping and wholesale centre cent up on the previous year but far take holidays.  whi ch clai cl ai ms to be th e la rges rg es t below the million-plus people who "We are expecting an increase in Chinese trading hub outside China.  visited from India, Saudi Arabia and

the UK, according to government statistics. "We expect Europeans, Russians and locals from the GCC [Gulf Cooperation Council] to continue coming, but we expect many more Chinese and Africans to come," Mr Lootah says. There are ambitious forecasts for the rise of China's middle class: a report from the Boston Consulting Group and AliResearch last year said China's emerging-middle and middle classes would grow by 5

per cent a year between 2015 and 2020, while the upper-middle and "affluent" classes would increase by 17 per cent a year over the same period. Meanwhile, according to Goldman Sachs, only 3 per cent of Chinese people have passports. Some 4.1m Nigerians - 11 per cent of the population - can now be described as middle class, according to Standard Bank, a (Continued on PAGE 62)

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

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The Financial Times [2013]. All Rights Reserved. Not to be redistributed copied or modified i n anyway.(The client) is solely responsible for providing this translated content and the Fina ncial Times Limited does not accept any Liabil ity for the accuracy or quality of the translation.

Moroccans warm to the potential of Paris

H

isto rica l and geographical ties have long made France an important destination for Moroccans. A steady stream of immigrants since Moroccan independence in 1956 now adds up to a community of 1.5m in France. Indeed, the population has tripled since 1975, according to the French government. This has turned Europe's thirdlargest economy into an essential s o u r ce o f r ev en u e th r o u gh remittances. According to the

 worki ng in Pari s over ove r ret returni urning ng to Morocco is diversity and competition in the workplace. "Developed countries such as France attract highly qualified international talent and that means an unparalleled opportunity for personal growth," he says. "I am  ver y att ach ed to my roo ts but I also feel that it's important to be exposed to what lies beyond."  A second se cond differenc difference, e, he argues, is that gender is less of a barrier to success. "I interact with far more  women in senior p ositions here in

Banque deremittances France, theofcountry generated 9.4bn in 2014 - more than a third of  which went to Moro cco, Algeria Alge ria and Tunisia. But France also lures some of Morocco's brightest and most talented youth, who abandon their country's sluggish economic growth and lack of a sophisticated business environment, complete their education in French universities and often end up staying. The FT spoke to four people who fit that profile and asked them about their experiences of working in France and how they compared with home.  Amine Fellahi Fell ahi was born an d raised in Casablanca but now works at Roland Berger, the consulting firm, in Paris - a city he likes because of  what he calls the "maturity " of its professional marketplace. "There is a lot of structure in France in terms of working processes," he says. "In Morocco, it is often hard even knowing who you should be talking to." You might have to go from one person to the next to discover who holds the data you need, he says. Mr Fellahi, who finished his studies at France's HEC business school and then Duke University in the US, says that it is difficult to shake up deeply ingrained working practices in his country. "Things tend to move more slowly than in France, as the person above  you in an organi org ani sat sation ion may not share the motivation of a young person with a lot of energy, and

France than I would back home," he says. The engineer now works at Google - "there are people here with pink hair while others walk around barefoot. I don't think there is any company like that in Morocco" - but does not rule out moving back to Morocco one day.  Apart from friends, family and the t he  weather, he says that he misses "the sounds, the colours, the smells". But he is in no rush to return. "It's  very rewarding rewardi ng to contribute contribut e to the growth of the place you come from. But you also don't want to miss out on learning."  Younes Bennai arrived in Paris from Morocco in 2000 to study and now has his own company that works on IT architecture design for some of France's biggest companies. The 33-year-old says that he could probably find opportunities to do the same in Morocco but likes life in Paris too much. "I've always wanted to live in a place  with an international feel and where  you can meet pe people ople who can gi give ve  you a wider perspectiv e on things," he says. "It is much easier to do that here than in Morocco." He feels that he can better follow big themes in geopolitics from Paris. "Leaders of opinion from the entire region pass through here," he says. "There is an intellectual richness that you just don't have elsewhere." He says that he misses some things about his country. Growing up in El  Jadida on Morocco's Atlantic coast,

mayher. even him or Youfeel canthreatened hit the glassby ceiling in a large organisation really fast depending on who is above you." Sara Kadaoui, a 24-year-old Moroccan working at a start-up accelerator in Paris, decided to

live in the French capital mainly She also found that promotion because the city offered her in Morocco is predicated more a more developed business on age and experience than on "ecosystem". "There is a real drive and talent. "To move up political willingness to support in most companies you have to start-ups in Morocco," she have worked there for years. says, but few companies do; That can be a real glass ceiling the business environment is "a because, in the digital world, the youngest people are the  work in progress". prog ress". Born and raised in Agadir, Ms ones who know the most." Kadaoui returned to Casablanca She has not turned her back on after completing her higher her homeland, though. Numa, education in France and the US  where she works, has opened but she found the jobs market an office in Morocco with the idea of supporting local startstiffMorocco, and relatively conservative. "In the prize for most ups. "Numa wants to transfer people is to be stable whereas the knowledge we gained so in France it has started to be that Casablanca can do the considered exciting to be an same thing that we did in Paris." entrepreneur and take risks," Mehdi Ghissassi, 33, argues she says. that one of the advantages of

 I've always wanted to live in a  place with an international  feel and where you can meet  people can who give you a wider  perspective on things ...

sun and sea rankthat high thatmove list. But he doubts heonwill back any time soon. "I am very pragmatic," he says. "I think about it and there are many opportunities but I know it will not happen in the next five years."

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

P AG E  6 1

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SoUThErn AFriCA-CASh CrUnCh

Dollar shortage highlights Zimbabwe’s woes

Insurers' pledge to help developing countries on climate change  When powe rful earth quak es the G7 nations said they would can do for them", he adds. gaps in insurance coverage are rocked New Zealand and Haiti aim to increase the number of a problem. And they're getting Onegroup measure for  worse each year." in 2010, each measuring 7.0 people in the developing world the year." wouldofbesuccess for "more magnitude, very different insured against the negative people to be covered against Finance ministers of the V20 dramas unfolded: New Zealand, impact of climate change. more perils", says Michael said in a recent statement that though hit hard, was able to start Since then, December's Paris Morrissey Morrissey,, president and chief the group is aiming to expand recovering relatively quickly; agreement to combat climate executive of the International access among its members Haiti, meanwhile, was brought change was signed by nearly Insurance Society, which to risk-pooling mechanisms, to its knees. 200 countries. supports the IDF.  which allow groups to share O n e m a j o r r e a s o n f o r  An ot he r in it ia ti ve is th e The IDF's mission, which it the burden of catastrophic the difference was the role Insurance Development Forum, is drawing up, is expected to risks such as earthquakes and insurance played in the two a collaboration of insurers, include helping many of the V20, flooding. island nations' recoveries. the World Bank and the or vulnerable 20 countries. The Several V20 countries already  Whereas most most of New Zealand's United Nations. The IDF aims members of this group - which pool risk with each other, earthquake-related damages to help emerging economies officially formed last October including Haiti, which is a  were covered by insurance, very understand and assess the risks at a meeting in Lima, Peru, member of a so-called risk few of Haiti's were. they face, while increasing their and which now includes 43 pool of 16 Caribbean nations. The lack of insurance for access to insurance. countries - consider themselves Haiti received a $7.5m payout e m e r g i n g e c o n o m i e s i s "For years the insurance among the most susceptible to from the pool following the becoming more of a problem industry has been very poor at the effects of climate change. 2010 earthquake. Yet insurance as the costs of natural disasters describing the value proposition "The aims [of the IDF and the payouts overall covered less increase. Exacerbating this risk of insurance," says Stephen  V20] are fairly well aligned," than 1 per cent of Haiti's are the effects of climate change. Catlin, executive chairman of says Matthew McKinnon, project earthquake-r earthquake-related elated economic the IDF and deputy chairman at losses, which were $8.5bn,  Yet th ersense e apofpeurgency ar s toamong be a  XL Catlin, the insurer. But now Development manager at the United Nations according to research by Swiss growing Programme, policymakers and insurers to the UN and other agencies "are  which is supporting the V20. address the problem. Last year starting to understand what we "Everyone recognises that huge (Continued on PAGE 62)

the end of the year. “We are in classic headless chicken territory,” another banker says. Z i m b a b we h a s u se d a multicurrency system since 2009 after dumping the Zimbabwe dollar in the wake of a period of economic chaos during which the central bank issued Z$100tn notes that lost  value almost as soon as they  were printed. The US dollar has dominated since then, accounting for more than 90 per cent of transactions. The South African rand accounts for about 5 per cent of transactions. But the depressed state of the economy, which has been hit by political uncertainty - including over who will succeed the 92-year-old Mr Mugabe, crippling infrastructure bottlenecks and drought has triggered the US dollar shortage.  A vehicle importer says he has been unable to pay his suppliers for five weeks and will have to downsize his operations if payment conditions are not eased. Quest Motors, a local John Aglionby  nAirobi  vehicle assembler, says it has  Wh en KP MG, th e adv is isor oryy says. "When incomes rise you sold just 40 units this year and company,, held its inaugural East have more insurable assets." company is operating at below 1 per cent  Africa Insurance Conference However, he also describes the of capacity. in February, organisers were sub-Saharan African insurance Few believe the introduction of surprised that more than 100 market as a "diverse picture". the bond notes will provide the industry participants attended. South Africa accounts for almost

focus on the markets "that are getting the biggest foreign direct investment projects" but that the so-called "laggards" should not be neglected. "You've got to stick with them

am es No rm an , head, KP MGwas 's 80 per cent of all premiums in Mayreieffectively meant solution the notes are derided  Jregional social- media as “Zimbabwe  was ntr odu cin g itsHarare ow ownn on insurance in sub-Saharan Africa and currency seven years after it dollars that went to private equally enthused when a similar the country has an insurance ditched the Zimbabwe dollar school”. number attended the launch of penetration rate - the total value at a time when the country But Zimbabweans, badly burnt a report on the sector last week. of insurance premiums as a  was gripped by record levels by the hyperinflation of 2005- "There's a real buzz about the proportion of GDP - of about of hyperinflation. 08, fear that in an effort to sector because opportunities 13 per cent, well above the But in the weeks since, a series s eries ensure it can pay its bills, the are immense," he says. developed world average. Of the of confusing and contradictory government will “de-dollarise” "There's a young population, rest, Kenya is among the most statements by officials, and bring back a local currency. a growing middle class - most advanced, with a penetration coupled with concerns that  Another option is to adopt a  wit h smar tphon es - and an rate of 3 per cent. Nigerias, in the government’s intention is different currency, such as the increasingly large diaspora comparison, is about 0.3 per to use backdoor methods to South African rand. “Unless coming back," he says. "There's cent, even though it is Africa's reintroduce the Zimbabwe things change soon, forced a whole new generation of largest economy. dollar, has merely exacerbated de-dollarisation by September s a v v y c o n s u m e r s w i t h This diversity mirrors the economic uncertainty. “It is a is a distinct possibility,” says a disposable incomes and large continent's broader economy. infrastructure projects being Commodity exporters, such spectacular own goal,” says bank economist. one banker who did not want The government last week built." as Nigeria and Angola, are to be named. pushed back public servants’ Lukas Mueller, head of north and struggling to achieve meaningful Zimbabwe’s central bank  June salary payments by three sub-Saharan Africa at reinsurer growth, while those nations originally said it would  weeks, as well as pensioners’ Swiss Re, is also bullish on  wit h mor e di ver si fi ed and introduce up to $200m of benefits. With state revenues the region, describing it as a less commodity-dependent

 while diversi diversifying fying your portfolio portfowill lio because eventually the cycle come back," she says.  Allianz is following following her advice. advice. Last October it opened a division in Kenya, its 12th subSaharan Africa operation. It comes a year after Prudential, the London-based insurer also started operations in east Africa's largest economy, although that was through the purchase of a local player, Shield Assurance. In December 2013 Prudential bought Express Life Insurance in Ghana to enter that market. Other deals include South  Africa's MMI Holdings buying two-thirds of Kenya's Cannon  Assurance last ye year, ar, which then merged with Metropolitan Life

- such as Ivory "giant waking up". saysand the economies 12 per cent below Coast, Tanzania and Kenya - are are He many expectations in thebudget first opportunities from infrastructur infrastructuree aand nd doing much better. three months of the year,  varied - from the government borrowed agriculture to catering for the Delphine Maidou, chief growing middle class. executive of insurer Allianz's "The insurance market is closely global corporate and speciality (Continued on PAGE 62)  Africa aarm, rm, says insurers insurers should linked to economic growth," he  Africa

Kenya. Muammar Ismaily, a Nairobibased insurance analyst at Exotix Frontier Research,

The queue outside the Harare branch of CABS bank stretches to at least 60 people, as Zimbabweans wait patiently to withdraw cash amid a deepening US dollar shortage in the southern African nation. If they are lucky, the cash machine will have notes - many do not and availability can vary depending on the time of day. In nearby shops, retailers warn that the scarcity of dollars - the dominant currency in the import-dependent nation - will soon start to show on supermarket shelves.  Authorities this week imposed restrictions on imports of a range of goods, from bottled  water to fertilisers and canned beans, while local businesses complain of not being able to pay suppliers. The currency crisis is indicative of the dire state of the economy under the regime of Robert Mugabe, Zimbabwe’s veteran president, which is desperate to reopen credit lines with the International Monetary Fund and the World Bank. The government had promised to address the dollar shortage by printing so-called bond notes - effectively currency notes - that are supposed to have the same value as the greenback. The announcement

bond notes backed by a loan from the African Export-Import Bank starting from next month. But their introduction has been delayed twice, and the central bank says that only $2m of the notes will be in circulation by

Africa's insurance market a 'giant waking up'

(Continued on PAGE 62)

 

P AGE  6 2

FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

Syndication articles from

The Financial Times [2013]. All Rights Reserved. Not to be redistributed copied or modified i n anyway.(The client) is solely responsible for providing this translated content and the Fina ncial Times Limited does not accept any Liabil ity for the accuracy or quality of the translation.

Dubai hotels . . . South African bank, although the country's economic downturn casts doubt on the report's prediction that 11.7m people will be in the middle class by 2030. Nakheel's plans play into a broader government strategy of increasing mid-market hotel availability to help boost total visitor numbers to 20m a year by 2020. Two years ago Dubai offered a series of incentives to developers of three- and fourstar hotels, such as waiving nightly municipal charges on hotel stays for a set period and allocating government land for the projects. They also tally with attempts by the ruling al-Maktoum family to forge closer links with China and subSaharan Africa, and expansion of flights by the state airline Emirates to these regions. Sheikh Mohammed bin Zayed al-Nahyan, crown prince of Abu Dhabi, visited Beijing in late 2015, while a string of African heads of state including the leaders of South Africa and Nigeria have  visited the emirate emi rate this thi s year. However, the new tourism push comes as growth in the supply of hotels is outstripping demand: despite a 7.8 per cent year-on-year increase in visitor numbers in 2015, occupancy declined by 1.4 per cent to an average 77.5 per cent, according to Deloitte. Revenues per available room, a commonly used metric, dropped 8.7 per cent. The professional services firm says another 31 hotels due for completion this year mean that the gap between supply and demand  wil l wid en fur the r in 201 6 and 2017. But it expects visitor numbers to increase again in the run-up to Dubai's hosting of Expo 2020, a  world's fair last held in Milan in 2015. Murray Strang, head of Dubai at Cluttons, the property advisers, echoes these concerns. "At most levels the hospitality market is pretty well supplied, and there are three years to go until the expo," he says. Dubai - which is a seven to eight hour flight from Beijing and about the same from Lagos - is working to increase awareness in target markets. Its tourism bureau this  yea r car rie d out a roadsh roa dsh ow in three Nigerian cities, seeking to raise its profile in its biggest African source of customers. Hotels have focused on adapting to the Chinese market in particular. InterContinental Hotels a Group (IHG) last year introduced "China Ready" status, a certification it gives to its hotels that fulfil criteria including Mandarin-speaking staff, acceptance of Chinese bank cards and Chinese tea for guests. Six of its

(Cont'd from from PAGE 59)

Dubai hotels have the status. IHG says Chinese visitors have spent 70 per cent more nights in its Dubai

We are expecting an increase in that market, a need for more threeand four-star hotels and resorts ... Our focus now is on the more affordable bracket...

But he says he is concerned that the preparations for Expo 2020 could lead to "unviable projects getting

Mr Lootah brushes off concerns that the hotel market could find itself in oversupply. He says that if even a small additional fraction of those who already pass through Dubai en route to elsewhere can be persuaded to spend time in the emirate, that will support growth

hotels in in the same light". visitor numbers. Last year 78m period last2016 year,than but "guests from the "All green of history shows that when you in people passed through Dubai  Afr ica ic a seem se em to hav e margi ma rgi nal ly have a one-off event such as the International, the airport's operator reduced their bookings". Olympics, people get bamboozled says, the highest number in the  Andrew Sangster, editor of industry by the prospect of a short-term blip.  world for the second year ye ar running. cla ssic ove overbuilding. rbuilding."" publication Hotel Analyst, says that  You get classic "Even after the end of the expo, Dubai has so far defied fears that it Mr Sangster says Dubai will also there will be more visitors. It will might suffer from hotel oversupply, face a delicate balancing act in raise our profile, raise people's partly thanks to tourists travelling attracting middle-class guests knowledge of Dubai," says Mr there instead of to destinations alongside the existing stream of Lootah. "The growth of Dubai will such as Egypt and Tunisia, where  wealthy visitors who lik e the city's continue - and we will still have a exclusivity. they feared further terror attacks. sense of exclusivity. shortage of hotel rooms."

Africa's insurance . . . expects there to be much more come into effect in 2018, are part of consolidation, particularly in  what analysts say is a growing trend east Africa. "There are dozens of of improving regulation, albeit from players, but only a handful control a low base and with a need for firmer the majority of the market," he says. enforcement. "And with new capital adequacy One example of this need for tougher rules coming in Kenya in 2018, enforcement is the extent of fraud many companies are going to have in the market. KPMG's Mr Norman to merge or be taken over if they estimates premiums in sub-Saharan  want to survive." survive."  Africa would, on average, be 20 per The new rules in Kenya, which cent lower if it were not for fraud.

(Cont'd from from PAGE 61)

Part of the reason for the fraud, he believes, is insurance companies' failure to innovate in controlling costs, keeping tabs on their agents and, most importantly, getting to know their customers. "There's a trust deficit gap - people don't buy insurance because they don't trust the providers," Mr Norman says. "They don't think the promise [that a claim will be paid] is going

Insurers' pledge to . . .

(Cont'd from from PAGE 61)

to be delivered. Claims are not paid quickly, fairly or correctly. It's a huge pain point across the continent." There are some signs of innovation. Nigeria, for example, is starting to see the first price comparison sites, such as Topcheck. Meanwhile, Ms Maidou says Allianz is seeing high demand for its recently created cyber insurance products.  Another innovation, innovation, she suggests, is greater use of technology - for example, using satellites to assess agricultural claims - which is expected to become increasingly importantt for the industry as large importan scale commercial agriculture takes off. "Do you need to go to a field in a country where you don't have an office when a satellite can do the job for you?" she asks. However, it is at the other end of the market, in microinsurance,  wher e the grea test inno vat ion

Re. Meanwhile, damages in New emerging economies for several  will probably be enough to motivate Zealand from its 2010 earthquake  years. The company helped helped create the insurers to continue their efforts. and two more in 2011 totalled Caribbean risk pooling scheme as well $31bn, of which insurance covered as similar schemes in Africa and among "I'm not going to pretend for one second that the industry's not looking around 80 per cent. Pacific Island nations. This gap between economic and Drawing on this experience, Mr Parker for growth," says Mr Catlin, adding insured losses - called the protection says initiatives such as the IDF could that governments and development gap - is a major determining factor face several hurdles, including a lack agencies increasingly acknowledge of how well a country recovers from of awareness in emerging economies that the industry can find new business a natural disaster. The gap is much about theregulatory insurance industry opportunities while at the same time Katerina and disruption is emerging.  wider among emerging economies Kyrili, head of African can do what or even restrictions  where insurance penetratio penetrationn is low. low. against purchasing insurance. But the "delivering a societal need more business development at Bima,  which distri butes and manages  According to Swiss Re, so-called prospect of opening up new markets cheaply than a government can". m i c ro i n su ra n c e p a ym e n t s insurance penetration - a measure in 25 developing countries, of premiums as a proportion of says insurance is not just for GDP - in Europe was 6.8 per cent in (Cont'd from P AGE 61) the relatively wealthy. She says 2014, compared to 3.8 per cent in  Africa. In Nigeria this number was $245m - about 1.7 per cent of gross party whose children are educated this is indicated by Bima's 23m just 0.3 per cent. customers, 40 per cent of whom domestic product - in Treasury bills. abroad. Bankers say it is a worrying Natural disasters have become It needs to raise at least another indication that the priorities will be are in sub-Saharan Africa and 60 per cent living on less than $2.50 riskier for these countries as $600m during 2016. revised randomly even as companies a day. their populations and economic development have increased. In a bid to manage the US dollar face closures. Offering life insurance for nin e currencies are leg al premiums as low as $0.50 a "When things hit, they're hitting scarcity, the authorities are  And while nine a higher concentration of value," promoting the use of debit and tender under the multicurrency month - for a potential payout says Martyn Parker, chairman of the credit cards, while encouraging s y s t e m , i n pr a c t i c a l t e r m s of $4,500 - Ms Kyrili says Bima global partnerships unit at Swiss Re. households and companies to use Zimbabweans are dependent on provides products that are easy to understand, such as offering Changing weather patterns and other currencies, notably the rand. US dollars. cash for medical bills rather than rising sea levels due to climate Through currency and import “The government wants me to buy blanket payments. change are only making matters controls, it is also prioritising the  worse. allocation of dollars to four sectors. food with Chinese and Japanese "Our view is the solution is all Swiss Re, whose incoming chief But the priorities have already been station product design," she says. cash,” says an unsuccessfully attendant at a filling battling to get about "It's not just about affordability but executive Christian Mumenthaler reshuffled in response to political a point-of-sale machine to accept a an experience that's accessible, is a member of the IDF steering pressure, with foreign payments committee, has been working for education elevated to “priority  Visa card. Both currencies are legal simple enough to communicate  with governments to address the one”. That followed demands by tender in Zimbabwe. “Where do I and won't create confusion but low insurance penetration among heavyweights in the ruling Zanu-PF get that money?” create incentives."

Dollar shortage . . .

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

ECONOMIC   AND INVESTMENT INDICATORS

P AG E  6 3

ECONOMY BY GRAPH

Exchange Rates for Transactions For the procurement of Forklift Maintenance Service (RFQ No. 3530002). Ethio telecom. Address: P. O. Box 1047,  Addis Abeba. www.ethiotele www.ethiotelecom.et. com.et. Closing date: July 18, 2016. Publication:   The  Ethiopian  Ethiopia n Herald, Herald, June 21, 2016. For the procurement of 1. Curtain Light, 2. Curtain Heavy, 3. Carpet. Ethio telecom.  Address: P. O. Box 1047, Addis Abe Abeba. ba.  www.ethiotelecom.et.  www.ethiotele com.et. Closing date: July 18, 2016. Publication: The Ethiopian Herald,   June 24, 2016. For the procurement of 1. Optical Meter and Light source (Paired), 2. Optical Fibre  Visual Fault Fault Locator Locator (Red Light Light Detector), 3. Transmission system maintenance tool kits, 4. Antenna System maintenance tool kits with RFQ No. 3449013-2 and34490252-3449017-2. Ethio telecom. Address: P. O. Box 1047, Addis Abeba. www.ethiotelecom. et. Closing date: July 19, 2016. Publication: The Ethiopian Herald, June 14, 2016. 2016. For the supply of Explosive. The Ethiopian Constructive Works Corporation Transport Infrastructure Construction. Tel. 0115538171. Closing date: July 19, 2016. Publication: The Ethiopian Herald,  June  21, 2016. 2016. For the supply of Explosive. The Ethiopian Constructive Works Corporation Transport Infrastructure Construction. Tel. 0115538171. Closing date: July 19, 2016. Publication: The Ethiopian Herald, June  21, 2016. 2016. For the supply and delivery of Lot 1. Server computers, Lot 2. A3 Flat bed scanner, Lot 3. Automatic optical level. Ministry of Agriculture & Natural Resources – Sustainable Land Management Project. Tel. +251 11 646 13 00/011 646-12 42/09 11-19 36 10. Closing date: July 20, 2016. Publication: The Ethiopian Herald, June  21, 2016. 2016. For the supply of Wire Bending Machine. The Ethiopian Crown Cork & Can Mfg. Ind. S. Co. Tel. 011-4 39 03 56. Closing date:

 July 21, 2016. Pu Publication: blication: The Ethiopian  Herald, June 21, 21, 2016. For the supply of different types of laboratory equipment and reagent. National  Alcoh ol & Liquor Facto ry. Tel. 0115516999,0115-517937. Closing date: July 21, 2016. Publication: The Ethiopian  Herald, June 3, 3, 2016. For the supply of 5 Mobile Calibration Units or Testing Units for Automatic  Weather Stations Stations in Addis Addis Abeba. National National Meteorology Agency. Tel. 251-11-6615779. Closing date: July 21, 2016. Publication: The Ethiopian Herald, June 19, 2016. For the procurement of Lot 1: 1. GSM/3G, 2. Unified Data Terminal that supports GPS, 3G and Wi-Fi, 3. Fleet Management System Software. FDRE Central Statistics Agency. Tel. 091 167 70 84. Closing date: July 22, 2016. Publication: The Ethiopian Herald,  June 23, 2016. 2016. For the procurement of Training in Telecom Network Costing Model, Telecoms Market  Analysis & Evaluation, and Investment & Business Appraisal in Telecoms Sector, Tender No. (RFQ No. 3466002-2). Ethio telecom. Address: P. O. Box 1047, Addis  Abeba. www.e www.ethiotelecom thiotelecom.et. .et. Clos Closing ing date date::  July 27, 2016. Pu Publication: blication: The Ethiopian  Herald, June 24, 24, 2016. For the supply of Lot 1. Biology Lab  Apparatus,  Apparatu s, Lot 2. Physics Lab Equipme Equipment, nt, Lot 3A. Chemistry Lab Accessories & Apparatus, Lot 3B. Chemistry Lab Glassware/Plasticware, Lot 3C. Chemistry Lab Instruments. The Public Procurement & Property Disposal Service on behalf of the Ministry of Education. Tel. 011-1540524/011-1-223722. Closing date: July 25, 2016. Publication: The Ethiopian  Herald, June 15, 15, 2016. For the supply of Size Coal. The Ethiopian Petroleum Supply Enterprise. Tel. +251 11 551 32 88/+251 11 551 00 45. Closing date: July 26, 2016. Publication: The  Ethiopian  Ethiopia n Herald, June 19, 19, 2016.

 

Currency

Buying

U S Do Doll lar lar

21 1.. 8 80 0 81 81

Selling 22 2.. 2 24 4 43 43

Pou Pound nd Ste Sterli rling ng

28.9699 9 699

29.5560 5 560

Euro

24.2811

24.7779

Swiss s s Fr Franc anc

22.4133 4 133

22.8485 8 485

Swedish Kroner

2.5843

2.6362

N or we we gi gia n K ro ron er er

2. 61 61 11 11

2. 66 66 32 32

Danish Kroner

3.2648

3.3273 0 .1 .1 26 26 4

Djii bou bouti ti Fr Fran ancc Dj

0 .1 .1 22 22 5

Japanese Yen

0.2124

0.2167

an ad C an ad ia n D ol olla r

16 .8 76 76 0

17 .2 01 01 4

Indian Rupee

0.3239

0.3302

Shilling Kenyan Sh

0.2154

0.2200

16.3125

16.6246

 Australian Dollar SPECIAL DRAWING

3 0. 0. 53 53 13 13

3 1. 1. 11 11 14 14

S ou th th Af Af ririca n Ra nd nd

1. 4 49 9 56 56

1. 5 52 2 53 53

Chinese Yuan

3.3074

3.3732

Source: TraDinG Source:  TraDinG EConoMiCS

Exchange Rates for Cash Notes Currency

Buying

Selling

U S D ol ol la la r

2 11.. 8800 8811

2 22.. 2244 4433

Poun un d Ste Sterl rlin in g Po

28.9699 9 699

29.5560 5 560

Euro

24.2811

24.7779

s s Fr Fran an k Swiss

22.4133 4 133

22.8709 8 709

Sw edis h Kr Kron er

2.5843

2.6388

or we N or we gi gi an an K ro ro ne ne r

2 .6 .6 11 11 1

2 .6 65 65 8

Danish Kr Kron er

3.2648

3.3306

D jiji bo bo ut ut i F ra ra nc nc

0 .1 .1 22 22 5

0 .1 26 26 5

J ap ap an an es es e Y en en

0 ..22 12 12 4

0 .2 16 16 7

Cann adia adiann Dollar l ar Ca

16.8780 8 780

17.2183 2 183

Saudi Riyal UAE Dirham

5.8139 5.9369

5.9309 6.0568

C en en trtr al al AAff riri ca ca FFrr an an c

0 .0 12 12 0

0 .0 12 12 2

Birr is expressed in terms of one unit of each foreign currency applicable on June23,2016 Source: Commercial Bank of Ethiopia.

Last updated on -Jun-2016 Location

Vessel

Voyage

L at a t e s t t  position

Late st position Date

Expected Position

Expected Arrival Date

Destional

AFRICA SEA PORTS SERVICES

GLOBAL STANDARD

08WB

At Djibout

14 Apr

ETB Revertng

-

Chartered Vessel

AFRICA SEA PORTS SERVICES

M/V Golden Eagle

At Richards Bay

03 Jun

ETC Richards Ba

06 Jun-

Chartered Vessel

AFRICA SEA PORTS SERVICES

M/V PETRE

At Sea

ETA Djibout

10 Jun

Chartered Vessel

FAR EAST PORTS SERVICES

M/V TRANSTIME

At Djibout

04 Jun

ETC Djibout

21 Jun-

Chartered Vessel

BLACK SEA PORTS SERVICES

Gambella

2 3 SB

At Djibout

28 May

ETB Revertng

-

BLACK SEA PORTS SERVICES

M/V New Venture

01

At Djibout

09 May

ETB Revertng

-

Chartered Vessel

BLACK SEA PORTS SERVICES

Mekele

16 NB

At Aliaga

-

ETB Aliaga Revertng

-

Charter

FAR EAST PORTS SERVICES

Assosa

1 3 EB

At Shanghai

27 May

ETD Shangha

06 Jun

FAR EAST PORTS SERVICES

Assosa

1 3 EB

At Shanghai

27 May

ETA Tianjin

08 Jun-

Destional Arrival Date

Business Calender 2015 Source: Ethiopian Shipping Lines.

ECX

Please send us your events for next w eek by email to theweekahead@addisfortune. com. We will print your information in th is corner of our publication for free. Use the opportunity to promote your big events.

የኢትዮጵያ ምርት ገበያ

Benchmark Currency Rates CURRENCY

VALUE

CHANGE

% CHANGE

EUR-USD

1.1108

-0.0017

GBP-USD

1.3439

0.0010

-0.15%

USD-JPY

102.6400

-0.1900

+0.07%

AUD-USD

0.7431

-0.0020

-0.27%

-0 - 0.37%

19JUL21 2016

DistribuTECH Africa-Exhibition and Conference for Transmission and Distribution - Information,  Te  Technol chnologies, ogies, Trends Trends

 Johannesburg,  Johannesburg,  South Africa Africa

BUSINESS SECTORS: ENERGY

BUSINESS SECTORS: COSMETICS, P ERFUMERY,

1.2963

USD-CHF

0.9804

0.0028

+0.22%

0.0007

+0 + 0.07%

Source: www.bloomberg.com.

June30, 2016

T

his chart displays the exchange rates of eight major world currencies. Scan across the chart to find the rate of exchange between an y two of the currencies.

18JUL21 2016

Cosmobeauté Asia-Malaysia International Exhibition and Conference on Cosmetics, Beauty and  Spa

USD-CAD

Kuala Lumpur, Malaysia

International Hard and Soft Commodity Prices COMMODITY 

Price

Change

% Change

HAIRDRESSING GRAINS

Coffee 'C' Future (Usd/Lb.) Corn Future (Usd/Bu.)

08JUL10 2016

 TTF Kolkata-T Kolkata-Travel ravel and and Tourism Tourism Fair 

Kolkata, India

Soybean Future (Usd/Bu) Wheat Future (Cbt) (Usd/Bu)

146.40 430.25

+0.75 -15.25

+0.51% -3.42%

5

1,137.50 430.25

-15.75 -15.25

-1.37% -3.42%

5

112.98

-1.85

-1.61%

5

1,341.35

+19.45

+1.47%

5

20.78

+0.45

+2.21%

5

221.70

+2.15

+0.98%

5 5

 

5  

LIVESTOCK

Live Cattle Future (Usd/Lb) BUSINESS SECTORS: TOURISM

   

 

MINERALS

Gold 100Oz Future Usd/T Oz)

 

SOFTS

Last updated on, June30, 2016.

Sugar No. 11 (World) (Usd/Lb)  (Usd/Lb) 

‘Always tell yourself: the difference between running a business and ruining a business is.  i. Frank Tyger.

INDUSTRIALS

Cotton No. Two Future (Usd/Lb)

 

These international commodity prices are indicative of future prices as speculated by market analysts. They are, therefore, subject to change. They are in US dollars, and the prices recorded are those of June 24, 2016.

 

P AGE  6 4

FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

L E I S U R E

PART SEVEN DISCLOSURE OF INFORMATION  AND INSPEC TION OF B ANKS

29. Inspection of Banks 2/ Where an application, accompanied with supporting evidence, is made to the National Bank by one-fifth of the total number n umber of depositors or by any number of depositors holding not less than one-third of the deposits of a bank, the National Bank shall examine, or cause to be examined, under conditions of secrecy, the affairs of the bank in order to determine whether it is in a sound condition and the provisions of this Proclamation and regulations and directives issued pursuant to this Proclamation have been complied with.

 VIRGO    VIRGO  ARIES Coordinate with your colleagues for maximum Those in sales and marketing may feel a strong urge to go efficiency at work. You will not only be busy with for a different kind of work. This week will help prepare  your current projects but wil l have a lot of new work  you for this. Efforts you make towards your goal will bring you coming your way. Make sure you meet all your deadlines this fulfillment and the self-employed will find their work/business  week, a s any delays in this regard coul d creat e problems for enhanced. The effort you put in this week will be the deciding  you. Keep your priorities right to avo id any confusi on. factor for, and directly proportional to, your growth. LIBRA   TAURUS This week, your career graph moves ahead at a much  You a re likely to be given an important assignment faster pace. An unexpected interview call lifts the spirit  with strict deadlines. This will test your dedication, of those wanting to change their j obs. Be confident and prepare especially mid-week. This is the perfect time for you move your  yourself well in adv ance for the i nterview. Avoid making silly career forward. Your seniors will appreciate your hard work and mistakes. This new opportunity will have better perks and satisfy

 you may allow also get to a much hi gher tionatt hat w ill  your desire t o do something challenging. youpromoted to experiment and take someposi risks work. SCORPIO GEMINI This week some unusual & challenging situations are This week you will be experiencing some positive indicated at your workplace. Your self-confidence and changes in your life. You will see growth in your career. presence of mind help you come out of this situation without New contacts you made in the past few days will prove beneficial to difficulty. Some great overseas opportunities are indicated  you. You will receive promotions and perks. For those in business, especially towards the middle of the week. You will climb up they will be able to clinch deals that have been pending for so the professional ladder at a much faster pace. long. Any work-related issue work will be resolved. SAGITTARIUS CANCER  This will be a good week for those applying for Proving your point probably is not the way to win over the post of flight attendant or other airline crew. others this week. They might nod in agreement, privately Medical professionals will find good job opportunities within hoping that leave them alone. Everyone wants to believe that they the government. There will be offers aplenty this week for IT have a choice so skip `hard sell` tactics and opt for something professionals to work abroad. Remember to be clear about thought-provoking that connects with the person you are working  your professiona l prioriti es this week. Look forward to the  with. Be confident, not pushy. great week ahead. LEO

CAPRICORN This is a very good week on the career front, as you This week you may have to face some hurdles with your new assignments and meeting deadlines may become  will deal with work press ure much bette r at this a tough task. You will have to work in coordination time. Interesting work proposals are likely to turn up, especially towards the middle of the week. This weekend is particularly  with your colleagues t o get your work done on time. Do not be good for writers and those in the communication field. Business stressed and try your best to calmly resolve these problems. Your

professionals may expect good offers from abroad.

seniors will be helpful and will guide you in the right direction.  AQUARIUS  A g reat week lies ahead of you on the career front. For artists and designers, this may be one of the best periods of your life. You are likely to get recognition and a raise in your income for the great work you have been doing. Others finally appreciate your dedication to your work this week. Great new opportunities are likely to be knocking at your door. PISCES

The week commences with a few challenges at the work place. The period can be somewhat tough for you as it may be creating possibilities of loss and distrust. This week also brings delays and postponements but free yourself and discover new things. Explore your creative side to bring out new ideas to deal with the situations occurring in the week.

Test 1 Which numbers is the odd one out?

 Answers from last wee week: k:

3628,2426,4146,1448

 Answers from last week:

Test 2 post-:MACRO  

Test 1

  LATE LANGUAGE   SMALL   LARGE   LAST

  7-(2x6)+(8/2)+3 7-(12+4+3=2

EACH NUMBERS REPRESENTS THE Test 2 NUMBERS OF LETTERSIN EACH WORD OF THE QUESTION

Test 3 Which numbers is the oddone out? 68 4

36 6

258

89 1

Test 3 MONTGOMERY 

47 9 14 6

Answers next week...

 As you journey through life, take a moment moment every now and then to think about others – as they could well be plotting something.

Talk is cheap because supply exceeds demand.

 

FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

C O N T I N U A T I O N

Public Health Concerns . . . packaging and plastic inputs used for a thorough quality check quarterly out the plastic bottles. of its own pocket. Her institution, endowed with “Yes, we are set to do the standards a mandate of serving as a referral check,” the expert at the Standards medical laboratory, has done a series  Agency said. “Most “Most of the time, it is the of research pieces on the quality of companies, which bear the burden of  water content, but never managed to the cost, that are reluctant.” do a single study on the plastic bottles. One round of standards checks costs “Finance is a huge limitation, we lack 35,000 Br to 40,000 Br for each visit. the technology required,” Tsigereda The ozone concentration levels injected said. “There are a list of priorities the into the bottles depends on the quality of Institute has to grapple with." ozone generating machines, according She never underestimates, however, the great impact and danger the pack might cause to the composition. “Nobody has raised any questions, nor set any standards on what kind of plastic materials we use”, Tesfaye Temesgen, general manager of Agmas, told Fortune. This is a company that came into the business one year back.  Agmas Manufacturing Plc, t he bottler of Agmas Water, imports the polyresin raw material from China and processes the bottles at its plant in Ayer Tena, west of Addis. Agmas uses a PET category bottle, which is not reusable. "We just bought the raw material from the international market by looking into prices," said Tesfaye. The company, which started production last year, distributes its water in 0.6lt and 1.2lt bottles to 20 major towns outside the capital. Once a bottler has been being declared fit, that should not be the last of it. The Ministry’s standards requirement demands that each bottler should do  A

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The basic and mandatory quality standards of bottled water are still not  fully accepted by industry  players, and also not exhaustively enforced by the implementers.

to Ashenafi Ambaw, Quality Control & Food Safety supervisor at Moha. "The ones from China and Europe are vastly different in standard," he explains. Moha has its own mineral water bottling plant in Addis Abeba’s Summit area. The company entered the market  with its brand name, "Kool "Kool Water" Water" bac backk in 2004. At the moment, the company is exclusively supplying the Sheraton  Addis Hotel and Ethiopian Airlines. It has the capacity of producing up to quality certificate.  Another player in the market, Dasani - a 14,000lt a day. The company received the last product of East African Bottlers - has certificate to be processed by the ECAE, been temporarily banned from market in 2015. However, its plastic bottled too.  water does not have the logo of the "During the third surveillance, we Standards Agency on it.  were told by Moha that they are not "This is mainly because of the producing the water and we could insufficient stock of plastic labels, not take and test the samples," an  where the logo is printed on them," expert from the ECAE told  Fortune . said Ashenafi. “According to our mandate, if t hey say Regarding the follow-up surveillance, they have stopped producing the water conducted three-month intervals, Moha then they have to give the certificates seems to be in trouble, with the ECAE back to us," the expert added. deciding to snatch away its original  Article of the Directive of the Ethiopian T

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(Cont'd from from PAGE 3)

National Standards, states that if the user (bottler) fails to provide the necessary information and samples to an authorised inspector, it will have its licence revoked. In this respect, the Enterprise has snatched the certificate from Dasani  Wa te r. Th e wa te r ca me in to th e Ethiopian market as a brand of CocaCola in 2014. It is a globally known brand, with a presence in 34 countries. The company was reported to have invested close to 30 million dollars to bring the product to Ethiopia's market.  Aside from the packaging , labelli ng and content of the water being bottled, dedicated public institutions seem to lack both the preparedness and institutional framework required to assess the conformity of the plastic bottles being used to pack the water. The usual trend is that almost all the bottlers use what is called polyethylene terephthalate (PET) category one,  which cannot be reused. Even if there are standards for such food grade materials, none of the above institutions have any kind of quality check to confirm that they conform  with these standards. The standards have listed a number of chemicals used to compose these PETs, with their acceptable levels or a minimum amount additive to be used. "We don't do testing on this material," said Tekea Berhane, corporate communications & service head at the ECAE. Quality audits were supposed to have been conducted by the FMHACA on

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the producer of the plastic bottles or semi-processed bottles, said Ashenafi. His company, Moha, use semiprocessed bottles from the local Pepsi International accredited company, company, Roha Pack, as well as plastic cups sourced from Greece. The basic and mandatory quality standards of bottled water are still not fully accepted by industry players, and also not exhaustively enforced by the implementers. Indeed, some of them are only at the early stage of being understood by both parties. The Ethiopian Standard Agency is now conducting a study to identify which of the standards are being implemented and which are not. Not only that, the EPHI has conducted no study on this due to the fact that the required technology to do the testing is not available. “No one knows if these plastics meet the standards or not,” said Tsegerda. The PET 1 category is commonly used to package cosmetics, water, juice, soft drink and oil. The plastic has to be transparent and non-reusable. Category two, on the other hand, commonly known as high-density polyethylene, polyethylene, are used for things such as cosmetics and detergents. The categories go up to seven, with softness and hardness levels also associated. Consumer protection has not received any complaints so far; though it has never given any awareness on issues to its constituency - the consumers. It is simply compiling the data from the ECAE, and never cross-checking with other certifying agencies, including the FMHACA.

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

FORTUNE CLASSIFIED

I 

t is a condition of the acceptance of advertisement orders that the proprietors of Fortune do not guarantee the insertion of any particular advertisement on a specific date or at all, although every effort will be made to meet the wishes of advertisers. Furthermore, we do not accept liablity for any loss or damage caused by an error, inaccuracy in the printing, non-appearance non-appearance of any advertisment, editing or deletion of any objectionable wording, or the rejection of any advertisment. Although every advertisement is carefully checked, occasionally mistakes do occur. We, therefore, ask advertisers to assist us by checking their advertisement carefully and advising us immediately so that an error will not occur. We regret that we cannot take responsibility for more than ONE INCORRECT  insertion  insertion and that no republication will be granted in the case of typographical or minor changes that do not affect the value of the advertisement. Fortune will not assume any liability for the content of advertisements. The advertiser is responsible for any material he or she publishes in our paper. FORTUNE MANAGEMENT.

 

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FO R T U NE  V OL . 17 No. 844 J ULY .   3, 2016

 

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FO R T U NE  V OL . 17 No. 844 J ULY . 3 , 2016

The Essence of gathering and sharing

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July 6 th 2016 11.30 - 15.30 Indulge the blissful moments of Eid Al Fitr with the entire family.   To mark this special occasion join us at Sheraton Addis for a Mega Brunch Buffet with Arabic Specialties, International options and a host of incredible complimentary benefits.  benefits. 

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