60 Photo by Sol Image
Years
Daryl Wilson Managing Director (CCBA)
Coca-Cola Keeps Refreshing
nd
2 YEAR NO 26 መጋቢት ወር 2012 March 2020 Ethiopia 50.00 birr , USA 5.00 $ , Europe 5 .00 Euro , South Africa 25.00 Rand , Kenya 500 Sh ,UAE 10.00AED Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
ETHIOPIAN CARGO EXPRESS SERVICES YOUR QUICK AND EASY SOLUTION!
www.ethiopianairlines.com/cargo Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Editorial Team MANAGING DIRECTOR Daniel Tiruneh
MANAGING EDITOR Getachew Alemu
EDITOR IN CHIEF Aklile Tsige
CONSULTANCY Zeima Ahmed
Editorial
STAFF WRITERS Mekonnen Hailu Ketema Kebede Chacha Hiwot Salelew
ABN: Main source of Business Information
Teshome Fantahun
REPORTER
Josephine Wawira Kamba Anthony Joseph Oduha
Designer Daniel Tiruheh Photo Sol Image
Abyssinia Business Network (ABN) is a monthly business magazine primarily focuses on business and economics as well as development. ABN has maintained its reputation and presence since its initial publication.
Web Admin
Rahel Tesfaye
Distribution Hailu Abesse
Partners
Ethiopia Culture And Tourism Addis ababa police Commission Ethio Great Investment Support Service PLC
Abyssinia Business Network is published by EYUDAN MEDIA PLC business license no .KK/AA/14/706/661438/2009
Address
Kirkos Subcity ,Wereda 02 , House No 545/B Meskel Flower
Disclaimer:
Abyssinia business network monthly magazine welcomes opinions, comments and letters. Comments, opinions and letters are sole responsibility of the author and does not in any case represent the position of the magazine.
For News, Advertisement, Views and Features on this Magazine Contact us +251 945 443450,+251 975 700859 +251 963 175 550 mixmediadani@gmail.com eyudanmixdani@gmail.com info@abyssiniabusinessnetwork.com WWW.Abyssiniabusinessnetwork.com 02
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
ABN enjoys a large number of readership including senior and middle level managers in private, public as well as non-governmental organizations. The magazine has been the number-one source of news and relevant information for both local and foreign investors as well as and entrepreneurs. ABN delivers the depth and breadth of business information to the businesses community. Each month ABN magazine delivers not only the best business news but comprehensive coverage of the latest global investment issues. A wide circle of academicians, consultants and other professionals are registered readers of the magazine. The magazine has been playing a crucial role in providing valuable information to our customers like the existing investment opportunities and business environment which is very significant to make investment decision and become lucrative in business.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
G
LOBAL FDI
26
CONTENTS Current Petroleum
06Coca-Cola:
16
Keeps Refreshing
Abyssinia Business Network / ABN / Magazine Subscription Form I wish to subscribe Abyssinia Business Network for 1 Month
copy/ies
3 Months
copy/ies
6 Months
copy/ies
1 Year
copy/ies
Full Name / Company First Name
Middle Name
phone number
Region/state
City/town Zone
Last Name
kebele /werda / District Sub-city
ADDRESS For submission Contact us via : tel +251 945 443450 , Email euydanmixdan@gmail.com/info@abyssiniabusinessnetwork.com
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
05
Exclusive
Coca-Cola: Keeps Refreshing By Aklile Tsige
Did you know? The first servings of Coca Cola were sold for 5 cents per glass. During the first year, sales averaged a modest nine servings per day in Atlanta. Every day, people all over the world drink 1.9 billion servings of Coca-Cola between them. It is, by some measures, the most widely distributed product in history. The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200 countries and territories. In addition to the company’s Coca-Cola brand, its portfolio includes AdeS, Ayataka, Costa, Dasani, Del Valle, Fanta, Georgia, Gold Peak, Honest, innocent, Minute Maid, PowerAde, Simply, smart water, Sprite, vitamin water and ZICO. The brand’s humble, up-by-the-bootstraps origin story, its history of innovation in both marketing and technology, and its close association with American men in uniform have made Coca-Cola virtually synonymous with America’s image overseas. Coca-Cola has been operational in Ethiopia since 1959 opening three factories in three parts of the country: Addis Ababa, Dire Dawa and Bahirdar. ABN Editor-in-Chief Aklile Tsige sat down with Daryl Wilson, Managing Director Coca- Cola Beverages Africa (CCBA) Ethiopia to ask some questions on the company’s overall operation while compiling reports from other sources, including Company’s Communications Department. 06
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Abyssinia Business Network/ABN/ crew has been to the first Coca Cola factory in the capital Addis Ababa in amidst of global pandemic. We witness the promising and obligatory measure being taken against the global health challenge corona virus aka Covid19. A health professional with a thermometer diagnosing, and another person providing sanitizer to three of us: the reporter, cameraman and the driver. We felt very safe to enter into a small meeting hall we conducted an exclusive interview with Daryl Wilson.
Photo by Sol Image
“It’s really a tragedy to what’s happened to the world. For a couple of months we, as a company, have been seriously taking the responsibility to prevent our employees from being infected with the virus, COVID 19.” Said the Managing Director, adding that the company is taking precaution through availing sufficient sanitization and testing materials and equipment.
partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca Cola” as well History has it that Coca-Cola began as designing the trademarked, in 1886 when the curiosity of an distinct script, still used today. Atlanta pharmacist, Dr. John S. Pemberton, led him to create a Prior to his death in 1888, just distinctive tasting soft drink that two years after creating what was could be sold at soda fountains. He to become the world’s #1-selling created a flavored syrup, took it to sparkling beverage, Dr. Pemberton his neighborhood pharmacy, where sold portions of his business to it was mixed with carbonated water various parties, with the majority and deemed “excellent” by those of the interest sold to Atlanta who sampled it. Dr. Pemberton’s businessman, As a G. Candler.
Throwback
Under Mr. Candler’s leadership, distribution of Coca Cola expanded to soda fountains beyond Atlanta. In 1894, impressed by the growing demand for Coca Cola and the desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain, becoming the first to put Coca Cola in bottles. Among the biggest challenges for early bottlers, were imitations of
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
07
the time. The bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and in 1916, the bottlers approved the unique contour bottle. The new Coca Cola bottle was so distinctive it could be recognized in the dark and it effectively set the brand apart from competition. The contoured Coca Cola bottle was trademarked in 1977. Over the years, the Coca Cola bottle has been inspiration for artists across the globe -a sampling of which can be viewed at World of Coca Cola in Atlanta.
Photo by Sol Image
The first marketing efforts in Coca Cola history were executed through coupons promoting free samples of the beverage. Considered an innovative tactic back in 1887, couponing was followed by newspaper advertising and the distribution of promotional items bearing the Coca Cola script to participating pharmacies.
08
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Fast forward to the 1970s when Coca Cola’s advertising started to reflect a brand connected with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing bottle of Coca Cola. The 1980s featured such memorable slogans as “Coke is It!”, “Catch the Wave” and “Can’t Beat the Feeling”. In 1993, Coca Cola experimented with computer
animation, and the popular “Always Coca Cola” campaign was launched in a series of ads featuring animated polar bears. Each animated ad in the “Always Coca Cola” series took 12 weeks to produce from beginning to end. The bears were, and still are, a huge hit with consumers because of their embodiment of characteristics like innocence, mischief and fun. A favorite feature at World of Coca Cola is the ability to have your photo taken with the beloved 7′ tall Coca Cola Polar Bear. Coca-Cola Beverages Africa (CCBA) is the 8th largest Coca-Cola bottling partner worldwide by revenue and the biggest on the African continent, accounting for about 40% of all Coca-Cola volumes sold in Africa. The Coca-Cola Company has been
investing in Africa for 90 years, since 1928, and is present in every African country. CCBA - headquartered in Port Elizabeth, South Africa - boasts a diverse pan-African footprint with more than 37 bottling plants servicing over 600 000 outlets that serve a combined population of over 300 million people across the continent. Coca-Cola Beverages Africa serves 13 countries in sub-Saharan Africa: South Africa, Ghana, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros, Mayotte, Eswatini, Botswana and Zambia. The company directly employs more than 16 000 people and enjoys the number one market position in most of these territories.
CCBA is pursuing an ambitious growth strategy that is aligned with The Coca-Cola Company’s 2020 Vision and which is supported through investment in manufacturing, sales, distribution and marketing. It is a world class, customer-orientated, socially and environmentally conscious fast-moving consumer goods (FMCG) company. Sales and distribution excellence are the company’s core strengths and employees conduct themselves with the utmost integrity for shared value and greater good. The company’s vision is to refresh Africa every day and make the content a better place for all, an inspiration that is driven by engaged, motivated and capable employees.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
09
Coca-Cola in
Ethiopia According to the vision statement of the company, Coca-Cola Beverages Africa (CCBA) aspires to refresh Africa every day and to make the continent a better place for all. Its contribution as the Coca-Cola system in Ethiopia is very massive and significant.
the right way by following company’s values and working toward solutions benefit the company. “At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment opportunities as we increase our effort and investment.”
Coca-Cola Beverages Africa (CCBA) in Ethiopia operates the East Africa Bottling Share Company (EABSC) as well as Ambo Mineral Water Share Company (AMWSC). Daryl Wilson, Managing Director Coca-Cola Beverages EABSC has three plants in Addis Africa (CCBA) Ethiopia Ababa, Dire Dawa and Bahir Dar stated that Coca-Cola entered and AMWSC has one plant in Ethiopia six decades ago and Ambo. has since created about 2 100 direct and more than 50 000 Apart from refreshing Ethiopians indirect jobs in the country with quality beverages for the and Ethiopia boasts the past 60 years in Ethiopia, EABSC second-largest population on aims to create greater shared the African continent. While opportunity for the business and consumption of soft drinks the communities it serves across is low compared to major the value-chain. markets, demand is expected to grow as the middle class rises The company’s sustainability and consumers are empowered narrative states that shared with spend. opportunity is more than just money, it’s about a better future The Managing Director for people and their communities, indicated that since 2010, adding that the company holds CCBA has invested an the belief that doing business estimated $150 million in 10
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Ethiopia. The business contributes an estimated $217 million to the economy annually in salaries, taxes, manufacturing, distribution and local shareholder profits. Daryl Wilson further noted that in July 2020, an announcement was made of a $300 million investment over the next five years to expand CCBA’s operations in Ethiopia. An immediate investment was planned for 2020 of more than $70 million and the balance of the investment will be to build a fourth plant in Sebeta, 25km outside Addis Ababa with a fifth plant planned at Hawassa. This includes specifically making investments in response to and in support of changing consumer preferences such as the launch of Zero variants in Coke, Sprite and Fanta as well as Fanta Red Apple with reduced sugar with plans to introduce additional categories of beverages into the future. Furthermore, through its plastic waste collection and recycling initiatives, CCBA enables a green circular economy by training unemployed women and youth to establish collection enterprises which in turn grows plastic collection and recycling infrastructure and supports the development of a circular value chain. This is a key component of the objective of The Coca-Cola Company and its bottlers to lead industry with a bold, ambitious global goal: to help collect and recycle a bottle or can for everyone it sells by 2030. “At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment
“
At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment opportunities as we increase our effort and investment.
opportunities as we increase our effort and investment. We want to support local Governments’ waste management objectives by stimulating a green economy where we operate.” Said Wilson. Also, as the first ingredient in most of its beverages, safe, clean water is critical to the long-term success of the CCBA business. Furthermore, a number of the countries in CCBA are water-stressed and in this context, the company takes its water stewardship responsibilities very seriously. Together with The Coca-Cola Company, CCBA are leaders in using water responsibly in operations and giving it back to communities. The company continues to manage
”
water resources through country projects that reduce water use in its operations, protect local water resources and provide safe, clean drinking water to communities in need. As part of the world’s leading beverage company, CCBA has a responsibility to use water as respectfully and efficiently as possible. The company is continuously looking for new ways to reduce water use in its operations, while treating its own wastewater to the highest standards. Coca-Cola, as a socially responsible company, has also been empowering women from communities across its markets through the 5by20 program. This global initiative aims to help five million women entrepreneurs within the Coca-Cola value chain
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
11
“We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is just our demonstration of efforts in contributing share to the ongoing reform in the country.” According the Managing Director, CCBA, together with The Coca-Cola Company, is a leader in using water responsibly in our operations and increasing reliable community access to good, safe water. It continues to manage water resources through initiatives that reduce water usage in our operations, by protecting local water resources and providing safe, clean drinking water to communities in need. Through Coca-Cola’s Replenish Africa Initiative (RAIN), 12
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
”
We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is just our demonstration of efforts in contributing share to the ongoing reform in the country.
”
overcome barriers as they grow or establish businesses by 2020. 5by20 programs specifically offer women business owners access to business opportunities, educational courses, financial products and mentors. Since 2010, 159 848 women have been enabled in this way across CCBA as the company’s contribution to the global goal.
60
getting Image
in partnership with The CocaCola Foundation (TCCF), we have invested over $670 542 which positively impacts 148 454 people including families working in the agricultural sector by giving them access to water and sanitation services in Benishangul-Gumuz and the SNNP regions. By the end of 2020, over 332 000 people will have benefitted from the 5 projects we have implemented to date, it was learnt. With regards to environmental protection endeavours, CCBA in Ethiopia took the initiative in mobilising relevant stakeholders to come together in partnership to establish an NGO called PET Recycling Community Organisation (PETCO). “We have supported the establishment of PETCO by providing $150 000 initial funding. PETCO is aimed at facilitating the collection and
recycling of PET by creating the platform that will also directly benefit women collectors and recyclers.” Noted the Managing Director. As part of its support in education, the company has built two stateof-the-art school blocks at Shimbit Elementary School, Bahir Dar, at a total cost of $220,000, benefitting 1600 students. A similar school at the ongoing new factory at Sebeta is under construction at a total cost of $236,000 following consultations with the Sebeta community to understand the community’s needs. Moreover, the company has invested $31,000 in a bursary programme for outstanding university students from low income families and run a Graduate in Training (GIT) programme for the past 11 years, benefitting 275 employees to date. For CCBA it’s about shared
opportunity: the company meets the needs of its consumers, develops its retailers and distributors, local suppliers benefit, jobs are created in communities where there weren’t any before and its shareholders benefit from the increased viability of its operations and the security of their investments. “We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is just our demonstration of efforts in contributing share to the ongoing reform in the country.” Said Wilson. Well-known that there are villages named after the company’s productCoca cola in Addis Ababa and Dire Dawa. This shows that the company has left foot prints within communities it has been operating with. “We are so proud and happy to have those villages named after
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
13
one of our products; it’s very fantastic. I don’t think there are other places we are operating in that are named after the product.” He said and expressed hopes that there will be more villages to be named after our product in the next sixty years. With regards to the recent visit paid by heads of Coca-Cola Company to Ethiopian Premier Abiy Ahmed (PhD), Wilson recalled that James Quincy Chairman and CEO of the CocaCola Company and Jacques Vermeulen CEO of Coca-Cola Beverages Africa exchange views with Premier Abiy on support of the Ethiopian Government Reform Program and the company’s interest to expand its investment in Ethiopia, adding that Abiy appreciated, and welcomed the initiative as well as commended the company’s move to expand its social responsibility through backing the city development works like the Entoto Parks and Beautifying Sheger projects. Regarding challenges the company is facing, the Managing Director noted that Ethiopia is not unique as there are challenges all over the world, and the company understands African challenges ranging from power and water to forex shortages. “We are closely working with the Ministry of Finance and Ministry of Revenues, and establish a good relationship to deal with major challenges.” Wilson said. A document obtained from the Public Affairs and Communications Department, Coca-Cola Ethiopia disclosed that tax policy uncertainty as well as foreign currency shortages are a concern for our business. For example, the
14
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
level of excise tax (as a % of revenue) makes Ethiopia (25%) the market with the highest excise across the countries where Coca-Cola Beverages Africa operates (13 African markets in total while Uganda (11%), Kenya (8%) and Tanzania (7%). Prior to the new excise tax framework that was adopted in February this year, the excise tax in Ethiopia was based on 30% of cost of production (which translated to 14% of revenue).” While we welcome the new framework, which is based on revenue (which is simpler to administer and improves tax collection efficiencies), the new framework represents an increase to around 25% of revenue for our business.” Said Wilson. This, according to the company, has a significant impact: If the company does take a price increase commensurate with an attempt to mitigate the increase in tax, we anticipate a volume loss of at least 15% in the first year. It does not welcome the risk of a 15% volume loss since the impact on the business be a restructure with a possible negative impact on direct permanent jobs lost and additional indirect job losses in our value chain. While the excise reduction on sugar does cushion the impact slightly, the net impact is still of great concern. As far as short-term and long-term plans of the company is concerned, Wilson indicated that the Company will keep expanding, expanding and expanding. It will get in all corners of the country to invest in the community we are working with, providing new consumption and beverages, and seeing into a plastic bottle-free country.
The Coca-Cola Company and CCBA have clearly demonstrated its commitment to investing in Ethiopia as well as its confidence in the growth of the Ethiopian economy. However, the quantum of its investment commitments was decided upon based on its projected returns under very different circumstances, i.e. prior to the new excise tax as proposed at 25% of revenue. While closing his remarks Wilson said, “The 60-year-journey of the company in Ethiopia has been amazing; we have witnessed continued growth and continued investment. As I said earlier, our 300 million USD investment will bring about continued development.” Today, Coca-Cola is sold virtually everywhere in the world. Researchers working at the South Pole can enjoy a frosty Coca-Cola in the sub-zero temperatures. Mountain climbers in the high Himalayas can stop for a Coca-Cola at their basecamp 20,000 feet above sea level so high that breathable air itself is a rare commodity. Here in Ethiopia Coca-Cola is said to be one of the most loved and wanted refreshing soft drink people of all ages anxious to drink whenever they are badly in need of relaxation and enjoyment. It’s everywhere in cafes, restaurants, play fields, gymnasiums, star hotels, lodges, resorts, beaches and remotest areas. The drink not only helped to alter consumption patterns, but attitudes toward leisure, work, advertising, sex, family life, and patriotism.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
15
O
verview
Ethiopian
Natural
Gas and Petroleum Industry
By Samuel Tekleyesus
T
he Oil and Gas sector in Ethiopia, currently at a very early stage of development, shows good potential for development on the long-run. Exploration for oil and natural gas is currently taking place in a number of areas in Ethiopia, including in parts of the Ogaden Basin in Southern Ethiopia, Afar in Northeastern Ethiopia, Southeastern Ethiopia, Afar in Northeastern Ethiopia, Southern Rift Basin, the Gambela basin, the Mekele Basin, Metema Basin, the Abay Basin in Northwestern and Main Ethiopian Rift Basin regions. Oil and natural gas discoveries in neighboring countries as well as the Calub and Hilala Natural Gas discoveries in the Ogaden region have created great interest in the above-mentioned regions under exploration, and the 16
Abyssinia Business Nework መጋቢት
getting Image
government has now established a national Petroleum and Natural Gas Development Enterprise, to further develop the sector and the government’s stake in it. Development of the oil and gas sector in Ethiopia has the prospective to transform the country’s economy. In terms of national economic planning and performance, the Government of Ethiopia tended to aggregate petroleum with industrial and
ወር 2012 March 2020
metallic minerals, particularly in terms of emphasizing the export domestic production. The Oil and Natural gas sector is governed by the Ministry of Mines, Petroleum and Natural Gas and the unit dedicated to manage the sector faces capacity constraints. The sector will benefit from strategies and policies to implement the broader vision for the sector. It is also currently governed by proclamations and regulations that will benefit from a revision
Ethiopia spends $2.5 billion annually on imported petroleum products
to align them to global good practices. Ethiopia is not dependent upon the development of natural gas for the generation of electricity. However, the production of domestic petroleum resources can be significant for Ethiopia’s economy either by being used domestically, or as an export. Used domestically, natural gas and gas liquids can substitute for imported fuels and be utilized as a feedstock for fertilizer and petrochemicals. As
an export, like other minerals, it could be a source of foreign exchange. Ethiopia spends $2.5 billion annually on imported petroleum products, which is 20 percent of the country’s foreign exchange. Development options can be mutually exclusive and decisions should be based on optimizing the benefit to the country.
Liquefied Petroleum Gas (LPG) and gas liquids offers benefits by substituting for the use of wood as a fuel. This can help reduce deforestation in Ethiopia where approximately 90 percent of 24 million cubic meters of the nation’s annual wood production is used for fuel and charcoal making.
Environmentally, the availability of domestically produced Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
17
The Petroleum Industry Ethiopia, at the moment, is largely an importer of petroleum products. White and black petroleum products are imported directly by the Ethiopian Petroleum Enterprise (EPE) through third party suppliers. Upon receipt from third party suppliers, EPE stores the products at Horizon Terminal in Djibouti and then distributes the different grades mainly Gasoline (Benzene), Gas Oil (Naphta), Kerosene, Light fuel oil, Heavy fuel oil and Jet fuel to Oil Companies through a fixed margin structure set by the government. In addition, EPE imports Gasoline (Benzene) from Sudan. For the supply of Gasoline in Addis Ababa, EPE has made an agreement with Nile Petroleum, a Sudanese Oil Company operating in Ethiopia, where the latter conducts blending of Gasoline with Ethanol (E5) at its depot in Sululta and distributes E5 to Oil Companies. Fuels pricing and revisions are made by the government on a monthly basis. Lubricants and greases, however, are being directly imported by the Oil Companies with the intervention of government in setting prices on a quarterly basis. The overall annual consumption of fuels in Ethiopia is estimated to exceed 2 billion liters, nationwide Lubricants and greases consumption is also over 25 million liters. The consumption of both fuels and lubricants is consistently increasing by 10% on a year on year basis and the trend in growth is expected to continue in a similar pattern over the next years. Increased economic Abyssinia Business Nework መጋቢት
activity coupled with increased government spending in the areas of infrastructure, power, mining and other sectors continues to further expand the demand for petroleum products. For long, few multinational oil companies with little competition to satisfy the increasing demand had controlled the petroleum
ወር 2012 March 2020
in economic growth and government’s plan to invest millions of dollars in infrastructure, hydropower projects, mining and others sectors, the current gaps between demand and supply in the petroleum sector is wide. Ethiopia is also believed to hold a huge potential for energy and mining. The nation’s current efforts in the areas of hydroelectric power projects and exploration of Oil and Gas are clear testimonies of the government’s determination to unleash its natural resources. Few local and a number of international companies are reported to have been engaged in petroleum exploration in various parts of the country. There is optimism on the part of oil companies and the government for increasing participation and transition from exploration to development and production. The gas reserve in Calub and Hilala localities is also estimated at 118 billion cubic meters (4TCF). The gas reserve was first discovered by an American oil company, Tenneco, in 1972. Crude oil reserve was also discovered in the Hilala block but the reserve was non-commercial. The Russian company, Soviet Petroleum Exploration Expedition (SPEE), confirmed the gas reserves in Calub and Hilala in the 1980s.
industry. Still currently, there are very few Oil Companies engaged in the petroleum business in Ethiopia. As compared to neighboring countries, Ethiopia has fewer numbers of Oil Companies with less competition. Despite persistent and increasing growth in the demand for petroleum products, the network expansion and supply by existing Oil Companies is not adequate. In view of the current trends
getting Image Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Current Petroleum Exploration and
Development Activities
getting Image
Ethiopia has begun selling its gas produce in the local market with a test production of about 1,650 barrels of crude oil.The crude oil we produced as a test is discovered near Hilala gas field.The Chinese Company PolyGCL Petroleum Investment Limited is responsible for the extraction and production of both crude oil and for the 20
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
construction of pipeline for the natural gasto Djibouti Port. Accordingly, the government plans to earn annual revenue of $8 billion from natural gas exports Additional exploration for oil and natural gas is taking
Companies holding PPSAs Company POLY-GCL Africa Oil Corp. South West Energy Tullow Gazprombank (GPB) New Age Falcon Petroleum Delonex
No. of Blocks 2 6 1 4 1 1 (large) 2 3 3
Petroleum Operations
Status
Development Exploration Exploration Exploration Exploration Exploration Exploration Development Exploration Exploration
Development Drilling Drilling Geo Geo Drilling Program Drilled 2 Wells Drilled 2 Wells Gas Discovery Drilling Program
Source: World Bank Report 2016 place in parts of the Ogaden Basin in Southern Ethiopia, Afar in NorthEastern Ethiopia, Southern Rift Basin, and Main Ethiopian Rift Basin regions. A number of international and few local companies are currently undertaking petroleum exploration in various parts of the country. Oil companies actively involved in the petroleum exploration and development undertakings are: Africa Oil Ethiopia B.V. (Subsidiary of Africa Oil Corp.), Calvalley Petroleum Inc., Epsilon Energy Ltd., Falcon Petroleum Ltd., Southwest Energy,
Tullow Oil, Pexco Exploration (east Africa) N.V. and Afar Exploration. Several firms have already acquired licenses to explore more than 40 blocks throughout Ethiopia in the past four years, the vast majority of them in the southeastern Somali Region. Currently eight companies hold Petroleum Production Sharing Agreement (PPSAs).
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
21
Natural Gas Development The Calub and Hilala fields have natural gas reserves of 4.0 TCF and 13.6 million barrels of natural gas liquids. These fields were discovered in 1973 and 1974 respectively. Currently, the PPSAs covering these fields are awarded to POLY-GCL Petroleum. African Oil, another contractor, assigned some of its blocks to other companies when exploration showed the presence of natural gas. The government has announced that there are natural gas reserves in other places. Unlike oil, in order for gas discoveries to proceed to development they require markets and facilities to process and transport it to markets. A framework agreement was signed between the Governments of Ethiopia and Djibouti to construct a cross-border pipeline from Ogaden basin to the Gulf of Aden. The governments also signed a Heads of Agreement with POLY-GCL Petroleum for the operation of the pipeline. The company will also build gas processing and LNG facilities in Djibouti. Petroleum Exploration Activities The Government of Ethiopia represented by the Ministry of Mines, Petroleum and Natural Gas petroleum exploration and development agreements with different International Oil Companies in two ways. One is when the Ministry signs “Petroleum Production Sharing Agreement” (PPSA) which could last up to 25 years and the other one is a “Joint Study Agreement” (JSA) for a maximum of two years. A Joint Study Agreement on geological and geophysical survey is underway in the 22
Abyssinia Business Nework መጋቢት
Main Ethiopian Rift Basin region after an agreement was signed between Africa Oil Company and the Ministry recently. Even though more mapping activities were carried out and still going on there is huge opportunities for investment (exploration, production and transportation) still available in areas like: • • • • •
The greater Afar Block The Mekelle Basin The Segen rift basin Abay basin The Ogaden basin
Petroleum Agreement Terms Petroleum agreement will be in the form of model production sharing agreement of 1994 or modern concession contract to be signed between the government of Ethiopia, represented by the ministry and a contractor.
ወር 2012 March 2020
getting Image
or modern concession agreements, which will serve as basis for the negotiation, are to be prepared by the ministry. The Ministry chooses the appropriate type of petroleum agreement, and it provides for the details of the terms of the model agreements. The proclamation concerning mining and petroleum operation are presented as follow: • Mining Operations Proclamation No. 678/2010
Petroleum Legislation According to Ethiopian law, petroleum operations shall be undertaken in accordance with petroleum Agreement. Petroleum Agreement is generically described as a contract or other arrangement between the Government and a contractor to conduct petroleum operations. Model Petroleum Agreements, including production sharing
• Proclamation N0. 295/1986 of petroleum Operations proclamation. • Proclamati NO. 296/1986 of petroleum Operations Income Tax proclamation, amended under proclamation No. 226/2000. Income tax for revenues generated from Mining Operations is fixed to 25% and is calculated from net income. The law provides companies to have free of duties, import, and export taxes. Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
23
24
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
CORONAVIRUS
COVID 19 Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
IMPACT OF THE CORONAVIRUS OUTBREAK ON
G
LOBAL FDI
By Staff Writer
The outbreak and spread of Coronavirus (Covid-19) will negatively affect global foreign direct investment (FDI)flows. With scenarios of the spread of the epidemic ranging from shortterm stabilization to continuation throughout the year, the downward pressure on FDI will be -5% to -15% (compared to previous forecasts projecting marginal growth in the FDI trend for 2020-2021). The impact on FDI will be concentrated in those countries that are most severely hit by the epidemic, although negative demand shocks and the economic impact of supply chain disruptions will affect investment prospects in other countries. More than two thirds of the multinational enterprises (MNEs) in
26
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
UNCTAD’s Top 100, a bellwether of overall investment trends, have issued statements on the impact of Covid-19 on their business. Many are slowing down capital expenditures in affected areas. In addition, lower profits – to date, 41 have issued profit alerts will translate into lower reinvested earnings (a major component of FDI). On average, the top 5000 MNEs, which account for a significant share of global FDI, have seen downward revisions of 2020 earnings estimates of 9% due to Covid-19. Hardest hit are the automotive industry (-44%), airlines (-42%) and energy and basic materials industries (-13%). Profits of MNEs based in emerging economies are more at risk than those of developed country MNEs: developing country MNE profit guidance has been revised downwards by 16%.
How will Covid-19 affect FDI The economic impact of Covid-19 will be uneven, with the effects caused by negative demand shocks concentrated in those economies most severely hit by the epidemic, and effects caused by production stoppages and supply chain disruptions felt especially in economies that are closely integrated in global value chains centered around China, the Republic of Korea and Japan, as well as South-East Asian economies. The investment impact will be even more concentrated. It will be
strongest in those countries that have been forced to take the most drastic measures to contain the spread of the virus. The outbreak of Covid-19 will slow down capital expenditures of MNEs and their foreign affiliates. Production locations that are closed or that operate at lower capacity will temporarily halt new investment in physical assets and delay expansions. Greenfield investment projects that are already ongoing will also be affected by this. However, as
new investment projects have a long gestation period and a lifecycle that can span decades, the immediate impact on existing investments and investment projects under construction is likely to be limited. Announcements of new greenfield projects (normally reported in UNCTAD’s data for the purpose of projecting future trends) could be delayed. Similarly, mergers and acquisitions (M&As) could see a slowdown. Like greenfield projects, M&As are generally long-term commitments to overseas markets. Nevertheless, data for February
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
27
show a significant drop in the completion rate of cross-border acquisitions, to below $10 billion from normal monthly values of $40-50 billion. Covid-19 will affect market-, efficiency and resource-seeking investment alike. Market-seeking investment and FDI projects in extractive industries could be delayed worldwide as a result of negative demand shocks. For now, the demand shock is most serious in China; for example, Toyota reported a 70% drop in sales in China in February.
UNCTAD
Lower MNE profits, lower reinvested earnings
Apart from the primary effect on FDI of MNEs concretely delaying capital expenditures, a further (indirect) mechanism through which FDI flows could be affected in the coming period is through lower profits in foreign affiliates leading to lower reinvested earnings, a component of FDI. In the economies most affected by Covid-19, reinvested earnings make up about 40% of total FDI inflows. (About 50% of profits in foreign affiliates, on average, are retained in the host country.) The MNEs in UNCTAD’s Top 100 – the largest MNEs worldwide based on their foreign assets, foreign sales and foreign employees published annually in the World Investment Report – are indicative of the impact that Covid-19 could have on investment trends. Of the (2019) Top 100, 69 have already made a statement regarding the impact of Covid-19 on their business. Of those, 41 have issued profit alerts or signaled increased risks, with 10 anticipating lower sales, 12 expecting negative effects on production or supply chain disruptions, and 19 expecting to be affected by both.
But the impact is already visible in major markets beyond China as well, especially in consumer-facing industries such as travel and tourism, retail and wholesale, and other consumer cyclicals. The negative effect on efficiency-seeking investment in production facilities that are closely integrated in global value chains (GVCs) will be concentrated primarily in China and East and South-East Asia at first. However, they could rapidly spread outside the region through GVC linkages. The transmission will concern both economies that feed intermediate goods and services into China’s exports, and those that rely on inputs of intermediates from China. For example, Fiat Chrysler Automobiles has temporarily stopped production of its Fiat 500L model at a plant in Serbia due to disruption in the supply of audio system components from China. 28
Abyssinia Business Nework መጋቢት
The automotive MNEs in the Top 100 appear to be most affected, with all 12 signaling negative implications (8 out of 12 due to production or supply chain disruptions). Nine out of 13 MNEs in the electronic components and equipment sectors have done the same. Most of the extractive industry and basic materials and chemicals MNEs, as well as the consumer goods firms in the top 100, have issued warnings about negative demand shocks. To date, concrete profit warnings have been issued by 23 of the Top 100 MNEs as a direct result of the Covid-19 outbreak. Most concern the consumer-facing firms, indicating that the demand shock, for now, is expected to have more direct effects on earnings than production or supply chain disruptions. Very few firms in the Top 100 have given specific guidance on expected profit impacts. Hon Hai/Foxconn, the electronics contract manufacturer that supplies major technology firms worldwide and that has significant production capacity in China, has so far lowered its expectations for global sales growth in 2020 from 3-5% to 1- 3%.
ወር 2012 March 2020
Covid-19 Looking at a wider sample of the global top 5000 (listed) MNEs, earnings forecasts for fiscal year 2020 have been revised down in the last month by an average 9 per cent. The majority of the top 5000 (by revenues) have had earnings revisions since 1 February (until 5 March); expected earnings were revised downwards especially in the energy, basic materials and consumer cyclical sectors; the automotive and the travel and tourism industries have been among the worst hit. Companies in these sectors and industries are normally important capital investors. The revisions to date are likely to be conservative. For the moment, the most significant negative revisions in the automotive industry come from parts producers based in the most affected areas in South-East Asia, while leading carmakers in developed economies have not yet registered the shock. The negative impact of the virus is likely to spread and increase further.
Across developed economies, earnings revisions have been relatively mild to date (table 2). On average, Japanese companies had a revision of earnings of about 9%, in line with the global average; this most probably underestimates the impact on Japanese MNEs given their proximity and GVC integration with emerging Asian markets. It should be noted that the numbers are changing rapidly, with revisions for large Japanese firms not yet fully reflecting the impact of Covid-19. For example, Toyota’s reported sales drop in China has not been reflected in earnings forecasts. The share of the reinvested earnings component of FDI for each region, indicative of the potential indirect effect that earnings losses could have on FDI. For example, the average -9% earnings losses projected to date for 2020 could affect 52% of FDI flows (this assumes losses are spread uniformly across MNE operations; in reality it is more likely earnings losses would be concentrated in foreign affiliates in affected areas, further augmenting the impact on reinvested earnings).
Downward pressure on FDI: -5% to -15%
getting Image
UNCTAD’s forecast for the underlying trend in the World Investment Report 2019 (confirmed in the January 2020 Global Investment Trends Monitor) projected a stable level of global FDI inflows in 2020-2021 with a potential increase of +5% (relatively marginal for FDI). Based on an expected GDP growth impact of -0.5% under a scenario in which Covid-19 would be brought under control in the first half of 2020, and a potential impact of -1.5% under a scenario in which the epidemic continues to afect the global economy throughout the year in line with projections by other international organizations UNCTAD projects a negative impact on global FDI flows ranging from -5% to -15% in 2020 (with the effect of the demand shock filtering through 2021). This is based on UNCTAD’s forecasting model, early indications from monthly transaction data, and estimates of the potential impact on reinvested earnings. Much of the impact will be driven by delayed investment as a result of the global demand shock. However, significant negative impact will result in economies and industries that are highly dependent on GVC trade. As such, the Covid-19 outbreak will potentially accelerate existing trends of decoupling (the loosening of GVC ties) and reshoring driven by the desire on the part of MNEs to make supply chains more resilient.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
29
Initiative Africa: To Host 14thAIFF Initiative Africais pleased to inform concerned bodies that the 14th Addis International Film Festival (AIFF) will be held in Addis Ababa from May 27th -31st 2020.The five-day documentary film festival presents a selection of over 60 local and international films, under the theme of human rights and a free world in their different forms taking place at the Italian Cultural Institute, Alliance Ethio-Française, Hager Fiker Theater, Hyatt Regency Hotel, the National Archives and Library Agency, and Vamdas entertainment. AIFF will have its opening on May 27, at 5:00PM at the Italian Cultural Institute with the presence of invited guests and ambassadors making the ceremony memorable. In a statement Initiative Africa sent to ABN, it states that the documentaries aim to contribute to the humanitarian efforts to put a spotlight on issues with human rights, discrimination due to gender, women empowerment, children rights, unfair labor practices, racial discrimination and ethnicity. Through the screening of relevant documentaries and by convening discussions among experts and practitioners, AIFF 30
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
is focusing on addressing the key drivers of change to engage in exchange of challenges and dilemmas related to the issue of human rights and sustainable humanitarian responses to social justice. The statement also indicates that each year the program highlights the industry’s emerging talent, paying homage to the year’s best documentary films, allowing the audience the opportunity to experience thought-provoking and insightful documentary cinema that offers unique or controversial perspectives in our world. It was disclosed that over the past years, hundreds of award-winning documentary features from the globe have been screened in several cultural centers and cinemas in the capital city, and various local youth centers and universities across the country.The event is a promotion of general underutilized standard of practice of documentary filmmaking, production and postproduction and advertising of local businesses that have sponsored the film festival.Entrance is free, for all screenings and workshops!
2020 CALL FOR SUBMISSION ARE OPEN UNTILMARCH 31ST 2020.FOR SUBMISSION/ INFORMATION ABOUT THE FESTIVAL PLEASE VISITOUR WEBSITE WWW. ADDISFILMFESTIVAL.ORG OR CONTACT US addisfilmfestival@gmail.com
What:14th Addis International Film Festival Where: Alliance Ethio-Française, Hager Fiker Theater, Vamdas Cinema, American Center National Archives and Library Agency (NALA), Hyatt Regency Hotel and Italian Cultural institute in Addis Abeba. When:May27th -31st 2020 Thank you! For more information, Call us: +251-11-662 2640/662 2641+251912613572(Ruth Bogale/Festival Coordinator)Email us: addisfilmfestival@gmail.cominfo@initiativeafrica. netVisit us: http://www.addisfilmfestival.org Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
31
Logistics challenges
Leone, Eritrea and Zimbabwe were at the bottom 4.
facing eCommerce
In most African countries, the result of the poor road infrastructure is heavy traffic jams that lead to delayed deliveries, canceled orders for the ondemand services and subsequently loss of revenue. Alternative modes of transport have therefore come into play in some markets like Kenya and Nigeria, with the use of easy to navigate motorcycles, popularly known as Bodabodas. With about 1.2 million motorcycles in the passenger transport business, Kenyan ecommerce companies have strived to tap into this market by using Bodabodas to swiftly deliver products especially within busy cities.
in Africa By Josephine Wawira According to Euromonitor, the world’s fastest growing economies by 2030 will be in Africa. This consequently makes the continent the next big e-commerce market. And as this positive narrative continues to place Africa as a top investment destination, the need for advanced logistics systems has become inevitable. The growth of e-commerce will significantly depend on the quality and efficiency of logistics networks; from intra and cross trade to financial transactions in payment of goods and services. When writing the African e-commerce story, I often leap at the chance to explore only the enviable milestones the continent has made. Nevertheless, there still exist formidable challenges especially in logistics, a vital constituent of the industry. The African Development Bank, in its 2019 African Economic Outlook, notes that “trade costs due to poorly functioning logistics markets may be a greater barrier to trade than tariffs and nontariff barriers”. This side of the story must also be told; if we are to find sustainable solutions to what could be the gateway to growing Africa’s e-commerce by leaps and bounds. 32
Abyssinia Business Nework መጋቢት
Unsatisfactory National Address Systems and Transport Infrastructure One of the biggest logistics’ hurdles holding back the industry is the lack of proper national address systems in most African countries. This, coupled by poor road networks, make it even harder to conveniently deliver products to customers. Consequently, companies have had to rely on fairly descriptive addresses and landmarks provided by the customers during the initial stages of the online purchase process. The delivery persons are also required to keep in constant contact with clients when delivering products, to receive further directions while en-route. While generally Africa’s infrastructure lags behind that of its counterparts including America and Europe, it is worth of note that each country has its own value proposition. In 2018, the World Bank’s Logistics Performance Index placed South Africa, Kenya, Rwanda, and Côte d’Ivoire as the top 4 best performing countries in Africa, while Somalia, Sierra
ወር 2012 March 2020
“There are huge opportunities for logistics to grow e-commerce, but few established players exist in the market,” notes Apoorva Kumar, Jumia’s SVP of Logistics. Present in 14 African countries,Jumia is one of the ecommerce players building logistics and fulfilment infrastructures to ease delivery of products to consumers using both vehicles and bodabodas. Providentially, technology has been a boon to the logistics industry. In Nigeria and Kenya, Jumia is running a well-established system using Machine Learning, relying on GPS enabled delivery apps. The coordinates collected in the first delivery are then registered and used in making a logistics network for future conveyance. In Rwanda, companies like Zipline are leading the way in commercial
getting Image
drone deliveries. While initially focused on delivering blood to remote health centers that are otherwise difficult to reach fast due to Rwanda’s hilly terrain; it is expected that Zipline’s drones will in future be used in other sectors including e-commerce. Back in Kenya, Astral Aerial Solutions is using drones for among other services, last mile deliveries. The company aims to, in its words, “open up Kenya’s hard to reach regions to new and exciting business opportunities”. The possibilities for a better future in logistics, in my view, are endless! And as Apoorva reiterates, companies cannot solely build a successful logistics system. “It requires integrating various systems and partners to create a big enough network to serve the growing needs of the e-commerce consumers,” he says, calling for both private and public partnerships to this endeavor.
What Then, Does the Future Hold? Data by logistics consulting firm Knight Frank, shows that the cost of transportation represents 50% to 75% of the retail price of the goods. This alone, underpins the demand for long-term strategies to the logistics challenges in Africa. From delayed deliveries between local destinations to sluggish growth of cross-border trade, the effects are being felt across the board. Modern online retailing is headed towards pre-orders, requiring mature infrastructure for both small and medium businesses. This will help meet the packaging, storage, distribution, freight and last-miledelivery requirements. Though challenging, Africa is a land full of commercial opportunities; causing a scramble for a piece
of the pie among international investors. Therefore, for e-commerce companies in Africa to achieve sustainable bottom-line growth, there needs to occur more techempowered handshakes between multiple service providers across markets. Governments have the responsibility to create onewindow-policies that empower digital payment solutions as well as logistics infrastructure including road networks, air cargo handling systems and warehouses among others. Similarly, e-commerce and logistics powerhouses like Jumia should commit to empower more upcoming entrepreneurs. They must also use their leading positions to continue paving the way for economic integration in Africa.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
33
Use of Innovative Technology in Designing Diverse Tourism Products
By Josephine Wawira Investment in new technology provides the tourism sector with opportunities for novelty, aimed at providing a platform for designing new and tangible tourism products. Emphasis goes to integrating innovative initiatives into tourism management; instrumental in enhancing full tourist satisfaction, based on destination value and quality of service. In a statement by UNWTO about positioning tourism in the global innovation agenda, Secretary General Zurab Pololikashvili noted that “this is only possible by bringing the private and public sectors together in a meaningful way and providing opportunities to share ideas”. From governments to tourism entrepreneurs, investors and innovators, all stakeholders have a role and an opportunity to use technology with an aim to grow the sector. Kenya is for instance endowed with numerous tourism products. Traditional beach tourism, exotic safaris and the budding MICE business tourism etcetera, the package is diverse while still possessing room for enhancement. Tourism contributed 3.7% to the country’s GDP in 2017 and expected 34
Abyssinia Business Nework መጋቢት
”
“this is only possible by bringing the private and public sectors together in a meaningful way and providing opportunities to share ideas”.
getting Image
ወር 2012 March 2020
to reach about 8.9% by end of 2018. I believe that strategic use of technology will go a long way in enabling the realization of this forecast. A case in point is the use of location apps to innovatively make destinations accessible, incorporating online food ordering and efficient delivery systems for the catering service providers. Not to forget the use of technologically cognizant OTAs (Online Travel Agents) by hoteliers and airlines to increase online visibility, provision of quick, comparative and seamless ticketing, booking, checkin and check-out processes.
”
Innovative Technology Image by Rawpixel.com
There exists numerous areas in the entire value chain where innovative technologies can and are already impacting the demand, and now is the opportune time for tourism stakeholders to invest in innovative solutions in order to reap big from the tourism gold mine. The main objective is designing and implementing initiatives that support the growth of the tourism industry. Consider options such as the use of big data and digital services to market the diversity of the tourism products like promoting a destination’s culture,
traditions, and history. This will ensure long term sustainability and profitability of the sector. The use of technology to design diverse and innovative tourism products will no doubt play an imperative role in positioning Kenya as a leader in tourism not only in Africa but worldwide. International arrivals to the country will as a result keep growing to surpass the 1.4 million in 2017, and tourism expenditures will exceed the 1.2 billion US Dollars earned in 2017. Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
35
Ethiopian Wins International Air
Cargo Marketer of the Year’ Award ET Corporate Communications
At the 2020 STAT International Award for Excellence, Ethiopian Cargo & Logistics Services won the ‘International Air Cargo Marketer of the Year’ Award in Air Cargo which was held from 25-27 February, 2020 in Mumbai, India. Ethiopian Cargo was awarded for its valuable contribution to the air cargo industry in a highly competitive and one of the fastest growing markets in the world. Mr. Fitsum Abadi, MD Ethiopian Cargo and Logistics Services and Mrs. Tigist Eshetu, Regional Director India along with Ethiopian team in India received the award. Commenting on the award, Ethiopian Group CEO Mr. Tewolde GebreMariam, remarked, “We are honored to have won the ‘International Air Cargo Marketer of the Year’ award which bears testimony to our leading cargo and logistics services in Africa and different parts of the world, 36
Abyssinia Business Nework መጋቢት
catalyzing multi-faceted growth in all the regions we serve. We have been investing heavily in facilities and freighters which enabled us to continuously expand our services and deliver safe, secure, dependable and competitive cargo and logistics services worldwide. The award will spur us to further excel in our operations.” Ethiopian Cargo & Logistics Services has built the largest cargo terminal in Africa with a capacity of close to 1 million tons annually. It delivers cargo services spanning across 57 international destinations in Africa, the Gulf, Middle East, Asia, North Americas, Latin America and Europe with 10 B777F and two B737F aircrafts. Ethiopian Cargo & Logistics Services transports general and special cargo. Recently we have introduced Ethiopian Pharma Wing and Ethiopian Cargo Express as new product wings.
ወር 2012 March 2020
Award
Ethiopian Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
37
Airbus
adapts wing production activity in COVID-19 environment Airbus SE (stock exchange symbol: AIR) is supporting efforts globally to tackle the COVID-19 crisis. The Company has carried out extensive work in coordination with its social partners to ensure the health and safety of its employees by implementing stringent health and safety measures, while securing business continuity. Airbus partially resumed production and assembly work in France and Spain on Monday, 23 March following a four day pause. At the 38
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
getting Image
same time, operations in the UK, Germany and the US continued at normal rates. Based on the adapted ways of working which reflect the new health and safety measures, Airbus is continuing to evaluate its production flow. In this context the wing plants in the UK and in Bremen, Germany, have reviewed the additional completed stock levels developed in the recent period and the immediate demand from
getting Image
the Final Assembly Lines as they resume partial operations. As a result of that review, Airbus has decided to adapt the production activity in the wing plants for the next three weeks. This means that the production and corresponding activities for support to production of the wing plants in Bremen, Filton and Broughton will be reduced, with an extended Easter holiday implemented at Broughton and Filton and a reduced working week at Bremen. The sites
will remain open during this period and will continue to ensure wing deliveries to the final assembly lines, the receipt and control of materials and components from the supply chain, building and installation maintenance, critical administrative support and preparation for activity restart. Employees will continue to perform activities remotely via homeworking where their activities are not directly related to the production activity being adapted.
Airbus is maintaining business continuity across its global industrial stream. As a leading industrial company, Airbus needs to continue its activities to support the global crisis efforts, support customers, suppliers and the global economy.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
39
The Power of Business Partnerships, Amid the
Covid-19 Crisis in Kenya By Josephine Wawira
Our daily way of lifehas been disrupted!The resulting social and financial outcomes being among others business closures, job loss, halted classroom studies, overwhelmed healthcare systems; not to mention the shutting down of industries that are solely the source of livelihood for millions of families across the world. Some companies have been forced to incorporate pay-cuts and unpaid leaves in their business continuity plans, at least to try to remain afloat during the coronavirus pandemic. On a larger scale, the export and import sectors have come crumbling down, as nations continue shutting their borders to curb the spread of the novel virus. According to the Kenya Private Sector Alliance (KEPSA)in its Economic Framework for COVID-19 response, thecrisis will have severe impact on economies across the world. Kenya’s 2020 GDPgrowth rate isexpected to drop by -51%, from a forecast of 6.1% to a meager 3.0%.Among economic sectors experiencing reduced demand include manufacturing (non-essential), education, tourism and leisure, aviation and maritime, all of which generally contribute a great deal to the growth of Kenya’s real output growth. Essential services like agriculture, manufacturing of essential items, medical supplies and services, healthcare, ICT, e-Commerce, food processing and retail have on the other hand registered increased demand in the country. Abyssinia Business Nework መጋቢት
The national apex body of the private sector has further stated that massive job loss is another blow dealt to the Kenyan economy; with a likely loss of 1.5M to 3.4M jobs in the short term. The range is highly dependent on impact in agriculture and tourism. For most, stuff has already hit the fan. But while all hope may seem to be in the verge of being lost, the business community inthe country is increasingly taking the moral high ground, uniting to help mitigate the negative effects of Covid-19 to the public, especially the most vulnerable communities.
“We understand our obligations to the communities where we live and work, and during this time, we have stepped up our efforts to ensure they deal with the challenges of food and hygiene. The journey has been tough, and to make it more impactful, we have partnered with fellow companies; public and private sector players, that share same interests with us, to uplift the members of our communities,” says Vimal Shah, Chairman – Bidco Africa.
ወር 2012 March 2020
For these businesses, the disruption of trade and supply chains does not mean vulnerable communities being left to the mercy of the killer virus and its harsh effects. Instead, it means coming together to lift each other from this historic social and economic mire. Logistics/courier companies partnering up with supermarkets to offerfree and increased delivery of essential items to homes to limit people movement and thus flatten the curve. It means donating hygieneproducts to parts of the country where citizens have limited access to healthcare.Donating food stuffs to
The launch of a Business Community PartnerUp platform by Sustainable Inclusive Business, a KEPSA foundation that prides itself as the knowledge center for businesses in Kenya, is bringing organizations together toexpress their needs or share their initiatives towards a common force for good;in the fight against the Corona virus menace. “For instance, farmers struggling to keep afloat in the current crisis, can now sell through organizations which are in return using theproduce to feed vulnerable families,” says the foundation’s Director,Karin Boomsma, adding that“The platform plays a critical role in showcasing the power of community.Itchallengesbusinesses toadopt interdependency sensible approaches that will help them remain resilient in times of crisis.” The coronavirus pandemic has given us a chance to critically look at our economic structure, appreciate its strengths and weaknesses and partner for the betterment of our society. We all have a role to play, and the private sector is laudably stepping up, using creativity, innovation, agility and long-term systemic thinkingto provide practical support to both the government and the society at such an unprecedented time.
feed children whose only source of meal was the school feeding programs, which have since been closed as a result of the crisis.
If the cooperation being witnessed is anything to go by, then Kenya is indeed in the right track towards becoming both economically and socially sustainable post covid-19. We know not the end, nor the ending of this Coronavirus crisis. So, while we all still have the chance, may we strive to make the world a better place to co-exist, now and in future; caring not only for profits, but also for the planet and people.
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
ን
ማን ልበል አላወኩህም እሙን በጣም ነው የምወዳት ፣ ሙሉ ህይወቴ ለሷ የተመሰረተ እስኪ መስለኝ ። የዕሙም መውደድ ግን ከናፍሯ ላይ ከኔ በተሻለ ነው ። ሆዴ … ዛሬ ሙሉ ቀን የት ነው ጠፍተህ የዋልከው ? እንዴት እንደናፈከኝ ፣ ስትጠፋ እኮ ይጨንቀኛል ። ያነጋገር ለዛዋ ከዜማ ጋር የታጀበ ስለሆነ እንዴት ደስ እንደሚል ። ከእሙ ጋር የተገናኘ ነው ተቀጥራ በምተሰራበት ሆቴል ውስጥ ለመዝናናት በሔድኩበት ሰዓት ነው ። የመጀመሪያ ቀን ያየኋት በዩኒፎርም ሲሆን ፣ ሆኖም ግን የለበሰችው አጭር ቀሚስ ልዩ ውበት ሰጥቷታል በደንብ እንዲታይ የሰውነት ቅርጿ እድሉን አመቻችቷል። እሙ ብዙም ቆንጆ ባትባልም ሆኖም ያላት የሰውነት ቅርፅ አቤት ፣ ወዴት ? እንድትል በሩን ክፍት ነው የሚያደርግው። ዓይኖችህ ማረፍ እስኪያቅታቸው ድረስ ነው ሰላማቸውን የምትነሳቸው። የአፍንጫዋ አቀማመጥ ብዙም ባይባልም እኔ ስለወደድኩት ለኔ ተውልኝ ። ብቻ የውስጤን ምን እንደነካችው ባላውቅም ነገረ ስራዬ ሁሉ የሚያስበው እሙን ነው ። የኔ እንደዛ መሆን ለእሙ…ሌላው ቢቀር ስለመፈጠሬም የምታቀው ቦታው ላይ ስገኝብቻ ነው ። የትኛው ዘመን ነው፣ እንደዚህ ነገሩ ሁሉ የህሊና ቀርቶ የዳቦ የሆነበት?። ከየትም አቅጣጫ ይምጣ በየትኛውም የድምጽ ቃና ብቻ የሷ ስም ይሁን እንጂ ሁሌም መልሷ ወዬ ነው። ታድያ ወዬ ያመጣብኝ ጣጣ
42 Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
?
። የካሮት እድገት ሆኖብኝ ይሄው ዓመት አስቆጥሬያለሁ ከወዬ ጋር፣ በመሃከል በተዋወኳት ሶስተኛ ወሬ ይመስለኛል በሳምንቱ የመጨረሻ አንዱ ቀን ልጋብዛት ፈለኩና ምን ማድረግ እንዳለብኝ ከራሴ ጋር ማውራት ጀመርኩ ። እንዴት ግን ትወደኛለች ? ስል የመጀመርያ ጥያቄ ለራሴ ጠየኩ ። ለምን አልጋብዛትም ብዬ እራሴን ደፋር አደርኩት። አድራሻዋን አንድ ትሰጠኝ ጠየኳት ከቢል ጋር አብሮ መጣልኝ ። እስከምደውል እንዴት ሰዓቱ ይሂድልኝ የአመት ያህል ነው የራቀብኝ ። መድረሱ አይቀርም ረፋዱ ላይ ደወልኩላት። ከእንቅልፏ እየተንሳች ነበረና ድምጿ ትንሽ ወፈር አለ ቢሆንም ግን ለኔ የትኛውም ይሁን ማናገሬን ብቻ ነው ያሰብኩት ሆኖም ግን ስወጣ ልደውልልህ ብላ ብዙ ሳታዋራኝ ስልኩን ዘጋችው ። ስልኬ በጮኽ ቁጥር የሷ እየመሰለኝ እደነግጣለሁ ። የሷ ስልክ ግን የውሃ ሽታሆነ ! አላስችል አለኝና ደውልኩ እዛ እንገናኝ አለችኝ የስራ ቦታዋ መሆኑ ነው ። ሰዓቴን ጠብቄ ሄድኩ ። ሰላም ነው አባት ብላ ሞቅ ባለ ሰላምታ ከሰጠችኝ በኋላ ምን ላምጣልህ ስትል ጠየቀችኝ ቡና አልኩ አፌ ላይ የመጣው እሱ ስለነበር ። የፈለኩት ግን ቡና አልነበረም ። እሙን ነበር ውስጤ የፈልገው ። እሙ ፈጥና ቡናውን ይዛልኝ ስትመጣ ያለኝን አቅም አስባስቤ ውጭ ምሳ ልጋብዝሽ ፈልጌ ነበር
ስል በፍርሃት ጠየኳት የእሙም መልስ ፈጣን ነበር ። ምንም ችግር የለውም የት ስትል ቶሎ ለመመለስ ጠየቀችኝ ፡ አንቺን የተመቸሽ ቦታ ፣ ሳሮን 7ሰዓት እንገናኝ ብላኝ ወደ ስራዋ ተመለሰች ። ደስታዬ ወደር አልነብረውም ። ወደ ቤት ለመሄድ በጣም ነው የቸኮልኩት ። እሙ ሂሳብ መታ እስክትወስድ አላስቻለኝም አቁነጠነጠኝ ። እሙ ሳትመጣ መሄድ ስለሌለብኝ በተቻለኝ አቅም ጠበኳት እሙ ግን ልትመጣ አልቻለችም በአይን ምልክት ሰጥቻት ወጣሁ ። የሌሊቱ ርዝመት ለኔ ለመጀመሪያ ግዜ ነው ። እሙን ላገኛት ስለሆነ ብዬ ግን በትዕግስት አሳለፍኩት የማይደርስ የለም ሰዓቱ ደረሰ ደስ አለኝ ። እሙ
አልመጣችም ! የሴት ነገር ስትቀባባ ይሆናል ብዬ ፣ 30 ደቂቃ ጠበኳት አልመጣችም ሰዓቱ መቁጠሩን ተያይዞታል 45 ደቂቃ አለፈ እሙ አሁንም አልመጣችም። ስልኳ ላይ ልሞክር ብዬ ስሞክር ስልኳ አይሰራም ምን ሁና ይሆን ብዬ ተጨነኩ ። ደጋግሜ ስልኳ ላይ ደውልኩ ዝግ ነው ። 1፡20 ደቂቃ ያህል ከጠበኳት በኋላ ወደ መጣሁበት በመጣሁበት እግሬ ተመለስኩ ። አላስችል ስላለኝ የመጨረሻ ብዬ ስሞክር ስልኳ ሰራ ደስ አለኝ ። እየተንተባተብኩ እሙ በሰላም ነው ብዬ ጠየኳት …የእሙ መልስ ግን ፣ ተመሳሳይ ነበር ይቅርታ ማን ልበል አላወኩህም?
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
43
ABN
10
Questions
?
“Volunteers are love in motion”.
ABN: Just tell us a little bit about yourself. Getu: Born, grew up and studied in the capital Addis Ababa, I graduated in Journalism & Communication from Addis Ababa University. I had served as freelance writer for various print media. Moreover, I worked at the Ethiopian Radio and Television Agency (currently called EBC) for twelve years. I had mainlyproduced different TV shows for Africa Journal, News coverageand 120 Entertainment Programs.
I received various awards for my memorable TV productions at ETV / EBC. In 2008 a French- based TV witnessed my reputation from the audience and named me “ባለ ንሥሩ ዓይን ጋዜጠኛ - A Journalist with an Eagle Eye”. My three TV shows were translated in French and aired via the station. With the producer‘s invitation, I had the opportunity to pay visits to Germany, Italy, France and Belgium where I was able to gain insight into Europe’s socio - cultural reality and media landscape.
By: George Yehish
Journalists, Getu Temesgen
Our first ABN 10 questions corner brings you one of the most popular Ethiopian journalists, Getu Temesgen who is known for his unique presentation and program content. Getu had worked at the former Ethiopian Radio & Television Agency (now EBC) for over a decade, mainly at the SUNDAY ENTERTAINMENT SHOW with which he managed to reveal and produce fascinating and hidden human-touch stories. He has received various awards, including Green Hero and Tana Awardsfor his magnificent documentary films and related TV shows.Moreover, he was named as “A Journalist with an Eagle Eye” BY a French TV station. New social ABN’s Editor-in-Chief AKLILE TSIGE now takes the opportunity to talk to Getu on his media business and related issues.
44
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
One of my TVproductions, ‘Greening Konso’`that depicts the long-standing natural conservation culture of the Konso community in the southern Ethiopian Region attributes to the “Green Hero” award I have received. Following the show-“Greening Konso”, UNESCO and the Ethiopian Heritage Conservation Authority as well as the Konso Special District Administration extended their recognition and awards to me. Currently I, Getu Temsgen – (ጌጡ ተመስገን) have got over 720,000 followers, viewing my different posts on my popular Facebook page. Coming soon, I’ll be launchinga YouTube channel called “Yagerbetdimits - የአገር ቤት ድምፅ. ABN:How could you manage to start your business on the social media (Facebook page)?
Getu: Nowadays, Facebook has become the largest socialnetwork in the world.It’s been 15years since the creation of Facebook, a platform that revolutionized social media in the United States and around the world. Facebook remains immensely popular – and profitable, so, the moment I left EBC I had to embark on launching my own Facebook page, taking advantage of the popularity I have gained from my TV audience. ABN:What are the main issues you cover on your page? Getu: I am gathering and broadcasting news and current affairs. I believe I have been disclosing timely, credible and reliable information of which people are in need.
ABN: Do you think people in Ethiopia use the social media to disseminate fair, balanced and reliable information, or for constructive and development purposes? Getu : Of course, Facebook and Twitter are playing positive as well as negative roles in Ethiopia and elsewhere in the world. Here in our country there are people who release fair, balanced and reliable information that are very important to bring about socio-economic as well as cultural changes. On the contrary, there are also people working day and night to fuel violence, conflict and hatred. ABN:How do you evaluate the business development on your page? Getu: The creative - ad copy and
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
45
all visual elements is part of the Facebook ad that will catch most people’s attention. And I don’t just want to catch only people’s attention. I want to catch people’s attention through bringing humantouch, and life-related stories to them. I am always advising myself to grow in line with my own pace , not to compare myself to others,Just to focus on own success. Hence, I’m witnessing good business development on my page. ABN:How could you approach your clients?
Getu:There’re people who recommend others to place their ads. on my page. Many believe that a Facebook page with over 700, 000 followers is one of the most accessible channels to promote products and services. I don’t go to people and persuade them to bring their ads. or announcement to me. ABN: How fair and reasonable is your price for posting different advertisements or information? 46 Abyssinia Business Nework መጋቢት
Getu:I think mine is very fair and reasonable. I’m a journalist who feels social, national and cultural responsibilities.Let others speak on this issue. ABN: As compared to mainstreaming media such as TV and radio, how is Facebook page going on in terms of reaching target groups? Getu:Here are a few of the reasons that there are immense differences between traditional and social media: first Social media reaches a maximum audience, while traditional media’s audience is generally more targeted. Second Social media is versatile (you can make changes once published), whereas traditional media, once published, is set in stone. Third Social media is immediate, while traditional can be delayed due to press times. Fourth Social media is a two-way conversation, and traditional is one-way. And fifth Social media often has
ወር 2012 March 2020
unreliable demographic data, but traditional media is more accurate, and bound to accountability. Therefore, to the best of my knowledge, the mainstreaming mediaremains a bit credible than the social ones. I think this requires research. ABN: What about“ Afalgun”, or Wanted, and gofundme kinds of posts? Do you receive money for such announcement? If not, why? Getu: “What is the essence of life? I think it’s to serve others and do good.” – This’sspoken by Greek philosopher Aristotle over 2300 years ago. Volunteering is becoming increasingly important these days.The greatest thing about volunteering may be the benefits it offers to individual recipients, their communities, and the volunteers themselves. Volunteers are love in motion.Thus, I’m doing those kinds of services free of charge. ABN: Tell us the opportunities and threats (advantages and disadvantages) of using Facebook page for business in Ethiopia? Getu: Facebook is changing the way we think, feel and chat: A better
Internet communication, Friend Finder feature helps you to find out your friends, with their names or email addresses., Also one of the biggest advantages of Facebook isbusiness promotion. You can start making FB pages for your brand or company and can use this advantage to earn money online, Facebook is the best thing to spend your time when you don’t have to do anything and just getting bored, The best part of the Facebook is that you do not have to pay money for its use and it’s the best medium for communication in the social networking sites, A platform to share feelings, life events Through Facebook, it is very easy to share your feeling, opinion and what’s happening in your life. As far as disadvantages of Facebook are concerned,people just start living in this virtual world and spend hours and hours on Facebook. Due to this, a new type of disorder has also come in human life (“Facebook Addiction” A new disorder), the fight continues against fake profiles & phishing bots (Opening an account, making a fake profile & ID is simple for anyone on the Facebook. And there is no limit for these fake profiles. There are so many cases of harassment & abuse that are often formulated by the fake accounts; this may compel many face bookers to turn their facesoff this medium due to lack of credibility, thereby making promotion of products and services difficult.
WE Thank You !
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
47
A Pioneer in Ethiopian insurance industry, providing quality service for the past 44 years with huge capital, high skill and high accessibility known for its fast response and reliable service! Ethiopian Insurance Corporation, at your service for all your insurance needs!
Your Reliable Partner! Ethiopian Insurance Corporation 40
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Berhan SchoolPay,
Pay tuition fees in comfort!
SCH Pay SCH Pay No more need to waste your time by going to the school premises to pay tuition fees. With Berhan SchoolPay you can easily pay from wherever you are through mobile, internet banking or stop by one of our many conveniently located branches.
Tel +251 11 663 0127 / +251 11 618 5732 +251 11 662 9568 Fax +251 11 662 3431
Swift BERHETAA
E-mail info@berhanbanksc.com
w w w . b e r h a n b a n k s c . co m
www.berhanbanksc.com
P.O.Box 387 Code 1110, Addis Ababa, Ethiopia
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
Abyssinia Business Nework መጋቢት
ወር 2012 March 2020
