MODERNIZING TRANSPORT

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Editorial

No More Empty Promises !

Transport is a catalytic force both as an agent vital for economic growth and as an agent for economic decline where economic resources and conditions as well as human endeavor are insufficient.

Efficient transportation system is one of the factor that unifies the entire economy and facilitates the development and advancement of cities.

The Government of Ethiopia is usually heard while promising to alleviate the transport problems across the country, and struggling to improve the infrastructure mainly in the transportation sectors.

It has been implementing various programs, including the Road Sector Development Program that aims to strengthen the road, air and water transport networks.

However, about a bulk of the total population of the country lives without access to all weather road networks and the transport system in the cities are characterized by the crowd, poor quality of service from transport operators, lengthy waiting times both at and between stations and high exposure to road accidents. In addition, poor organization and management of available transport systems, low capacity of the existing road network and its inefficient use, poor planning and controlling procedures, low road traffic awareness and depraved driver behavior resulted with high accident rates particularly among foot-travelers and children.

Low quality and poor transport policy does not allow effective and efficient provision of services and inhibit the smooth and effective implementation of the various policies designed to promote and intensify national development.

The countries current transportation system is marked by a poor access network, lack of adequate public transport services, continuous increases in transport fees, lack of smooth traffic flow and infrastructure for pedestrians, and a high rate of traffic accidents.

The Federal Government should have to sustain the strive to enhance the efforts to improve road safety and access to all weather road networks, vehicle examination and critical inspection of driver licensing procedures and encourage the participation of private sector in improving its effectiveness Complaints from the public have been increasing alarmingly that they are suffering from ill-managed and poor quality transport service despite government promises to enhance the sector in sustainable manner.

The people don’t have options except waiting for the implementation of the 10-year National Transport Plan designed recently by the ruling party. Butcitizens are expecting the government to be as good as its words, not to make empty promises.

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Modernizing Transport April 2021

Aklile Tsige

Editor-In-Chief

Aklile Tsige is a journalist, a documentary script writer, director and narrator, movie subtitlemaker and Aviation English Language Rater.

His work has earned him numerous recognitions and certificates from various film production companies in the country. Currently Aklile is engaged in freelance writing for different media houses, and also serves as Editor-in-Chief for Abyssinia Business Network/ABN/. He has studied English Language and Literature for his under graduate study and Journalism and Communications,Graduate School of Journalism and Communications Addis Ababa University.

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08 04

Founder, CEO and Managing Director

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H.E Dagmawit Moges FDRE Minister of Transport

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Melkamu Assefa

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Inspector Assefa Mezgebu Road Safety Expert

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CONTENTS

58 36 44

Gebreyesus Igata

Founder and Managing Director

Rashid Mohammed

Ethiopian Road Fund Office Director

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Daryl Wilson

Managing Director

Gebreselassie Sefer Commercial PR Manager

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“

Our ten years perspective transport plan (2020-2030) has also identified major goals and targets aiming to expand transportation services both in urban and rural settings.

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”

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Modernizing Transport April 2021

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H.E Dagmawit Moges FDRE Minister of Transport

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Towards Modernizing

Transport Transportation infrastructure in Ethiopia has been neglected for decades, but is now apriority of the government of Ethiopia. A large number of roads and railways have been built and are currently under construction. The sector has been playing a crucial role in reducing transaction cost for transporting goods and commodities in different parts of the nations. As part of the service sector, it contributes its own share to the GDP. And there are several stakeholders who are directly or indirectly engaged in the sector to play positive roles for the sector’s development.

Road transport plays a vital role in the efforts to uplift the economy of developing countries. The importance of road transport is more significant in the case of landlocked countries such as Ethiopia because it can be used at the small scale level to satisfy the need for conveying goods and people in a given country or location.

There is a rail transport along the Ethio-Djibouti corridor. As it is not good enough to facilitate transit trade, the role of rail transport is insignificant. The use of rail transport is mainly to transport passengers and small parcels of goods in the corridor. Like the rail transport the air transport in the country does not play a major role to lift up the poor quality of goods transportation especially the transit of import and export goods.

Despite efforts being made by the Federal Government of Ethiopia to develop the transport sector, there are still many challenges that hamper the smooth, efficient and effective transport system across the country. poor organization and management of available transport systems, low capacity of the existing road network and its inefficient use, poor planning and controlling procedures, low road traffic awareness and depraved driver behavior resulted with high accident rates particularly among foot-travelers and children are believed to be the major problems of the sector.

ABN met Dagmawit Moges, FDRE Minister of Transport, and discussed the start of the transport sector in Ethiopia, its development, challenges and the way forward.

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Modernizing Transport April 2021

ETHIOPIA

By Staff Writer /ABN/

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ABN: As Minister of Transport in a country of over 110 million people, how do you describe the transport development and its current status?

Dagmawit Moges: Modern transport sector development in Ethiopia began in the early 1900s especially through the introduction of the first railways transport between Ethiopia and Djibouti and adoption of first motor cars by the then emperor Menelik II. As Ethiopia has vast geographical and natural obstacles, establishment of communication channels via transport channels has been overwhelmingly difficult. The mountainous nature of the land, the numerous rivers and their watershed systems, the diverse climatic conditions varying from all year-round rainy locations to the hottest spot of the world, and so forth have been among the major natural reasons for the low penetration of all-weather roads and other infrastructure amenities.

For so long time, development of such a system traditionally has been considered as a government’s priority task, which hinders the participation of the private sector.The low level of transport infrastructure in Ethiopia was evidenced by the 1991 data which suggested the country had only 13,000 kilometers of all-weather roads. For a vast and naturally diverse country such as Ethiopia, road infrastructure is expected to play leading development role. Yet this low figure which we had, has been among the reasons that we can witness for the low level of economic development of the country, and inability to utilize its untapped natural and manmade development endeavors.

Currently, Ethiopia has more than 147,000kms of all-weather road, 890kms of railway line, 690 bus terminals, 301kms of express road, 8 dry ports, 22 standard airports, total inbound logistics rate of 17 million tons of which the dominant portion is transported through road transport as followed by railways.

“Our ten years perspective transport plan (2020-2030) has also identified major goals and targets aiming to expand transportation services both in urban and rural settings.”

The general status of Ethiopia’s transport system is believed to be in low stage of development, especially as far as transport infrastructure and transport service quality is concerned. But the major activities which we had undertaken in the last three years including the adoption of the national transport policy, national logistics policy and strategy, non-motorized transport strategy and so many other related legal and institutional arrangement frameworks are believed to position the sector to lead the right path of development. In addition, the Ministry and its accountable institutions have undertaken series of organization structure, manpower allocation, capacity building and technology related changes and development schemes, which we believe would Abyssinia Business Nework // ABN

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significantly boost the infrastructure and transport service provision in such a sustainable, equitable and reliable manner.

ABN: It is obvious that the country has been making attempts to enhance the transport sector in all perspectives, but there is still a long way to go. People are still expressing their dissatisfaction over the transport quality and accessibility. What’s your reflection on this?

Dagmawit Moges: It is obvious that Ethiopia’s transportation system is marked by poor access network, lack of adequate public transport services, continuous increases in transport fees, lack of smooth traffic flow and infrastructure for pedestrians, and a high rate of traffic accidents. Moreover, our transportation system especially in urban localities is affected by parking difficulties, longer commuting due to congestion, low level of public space and old vehicle related environmental pollution.

Just like any other infrastructure amenity such as health and education center, or services such as electricity, water and sewerage and telecom, transportation related challenges are not exceptional in any form of development path. The very nature of development trajectory is associated both with opportunities as well as challenges. For instance, if we take the situation in Addis Ababa, our capital city, over the past two decades tremendous boom in the construction sector has attracted hundreds of thousands of employment seekers from all across the country. And as these people would like to work and stay in the city for different economic and social purposes, there is no doubt 12

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“We shall have more than 25kms of cable car transport, which plays vital role to boost tourism and transportation activities. At the end of the perspective plan, total international and domestic air transport passenger number will reach around 50 million as compared to the current 10 million.” that the additional population would require all sort of public amenities including transportation.

Our National Transport Policy envisions to achieve accessible, integrated, customer- oriented, safe and environmentally friendly and globally competitive transportation system. Our ten years perspective transport plan (2020-2030) has also identified major goals and targets aiming to expand transportation services both in urban and rural settings. Among the targets we aimed, increasing the total length of all-weather roads from its current 147,000kms to that of 245,942kms in ten years’ time, introducing nonmotorized transport systems in more than 69 urban centers in Ethiopia, increasing the share of public transport from its current 34% to that of 70% in urban localities, building more than 7 bus rapid lanes (BRTs) and introduction of cable car transport system, increasing the rural roads regular transport service coverage from its current 67% to 100% and decreasing the number of traffic accident fatality rates by half and other related plans would definitely impact the overall accessibility and mobility status of the country.

ABN: Let’s talk about the activities being undertaken in modernizing the transport service sectors.

Modernizing Transport April 2021

Dagmawit Moges: The activities which the Ministry undertakes in modernizing the transport service sector are all generally derived from the National Transport Policy and Ten Years Transport Perspective Development Plans.

Modernization of transport services is related directly or indirectly to solving common challenges and problems including bringing technologies and tools that enable the reduction of air pollution, noise and traffic accidents, efficiency improvements, creation of efficient traffic flow and management practices, and those practices which could help us avoid poor integration among transport service providers, misuse of scarce resources, and those practices that technology could bring forward looking solutions through digitalization and concepts emanating from 4th generation industrial revolution outputs.

As far as modernizing the Light Railways System of Addis Ababa (LRT) and the Ethio-Djibouti Railways Line, mush emphasis will be given for all sorts of capacity improvement activities that intend to increase the total passenger and freight movement capacities. Regarding railways for

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passenger movement, we have plans to introduce electronically enabled card buying systems, and install software supported tracking mechanisms, to help passenger get immediate notifications on the whereabouts of the railways. To increase the total freight capacity of the Ethio-Djibouti railways line, series of engineering and capacity related and other safety and security related measures will also be undertaken.

of the number of public transport buses, introduction of innovative para transit transportation systems for rural localities are just some.

Moreover, as Ethiopia is endowed with rich source of navigable rivers and lakes, we have plans to introduce water way transportation systems in more than 7 lakes and rivers, and also have plans to import fluid cargo via the first ever pipeline transport systems.

With regards to road transport, several plans and initiatives have already been identified in terms of quality and coverage. In fact, the Ministry through its accountable Federal Transport Authority is now formulating the first ever Road Transport Policy which shall encompass least of potential modernization areas. But basically the institutionalization and extensive application of the contents of the NonMotorized Transport (NMT) Strategy and its related expanse of bicycle and walking transport facilities, introduction and mass utilization of electric driven automobiles and buses, introduction of cable car transport mechanisms both for tourism and transportation purposes, introduction of BRT system and electric enabled bus transportation systems, increasing

“We shall have more than 25kms of cable car transport, which plays vital role to boost tourism and transportation activities. At the end of the perspective plan, total international and domestic air transport passenger number will reach around 50 million as compared to the current 10 million.”

The National Logistics Strategy of Ethiopia (2018-2028) has clearly As far as Aviation is concerned, identified the need of modernizing the modernization component this sector in such a way to make may include installment of state it a leading enabler for trade and of art and modern communication investment in Africa. To realize systems, introduction of online that improving logistics services services, increasing the total foreign by refining the national trade and exchange earnings via training and finance system, establishing well related activities, and expansion integrated and interfaced transit of modern building and working and customs system, improving facilities especially in aviation logistics service provider’s Abyssinia Business Nework // ABN

terminals and airport infrastructure development. As we have plans to increase the number of domestic and international flight passengers’ number, terminal expansion and modernization of terminal related operations through advanced technologies will also be part of the modernization process.

Modernizing the Logistics Sector is probably one of our flagship areas, which we would like to transform its processes, activities and work procedures. As logistics is all about time and cost efficiency and reliability, modernizing the sector could mean improving investments, enhancing inbound import and export and increasing our international competitiveness.

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efficiency, reducing the monopolistic practices, developing and expanding logistics infrastructure and building up of the logistics sector institutional capacity are among the areas which we have identified basic intervention concerns.

ABN: As a nation the Ethiopian Government has designed a 10-year massive economic plan for all development sectors. So does your Ministry. Can you briefly explain the main elements, outputs, and objectives of this plan?

Dagmawit Moges: The Ten years perspective development plan (2020-2030) of Ethiopia was prepared envisioning to make Ethiopia an African Beacon of Prosperity. The plan is intended to ensure shared prosperity in all its dimensions, where every citizen gets access to it.

For this journey to prosperity to happen, the economy should stay in the high growth trajectory, targeting a 10 percent average GDP growth over the decade. And the GDP share of Agriculture, Manufacturing, Tourism and Mining sectors is expected to increase significantly. As the perspective plan has inclusive and comprehensive goals, we believe it shall bring profound changes in economic, social, administrative and institutional aspects. In doing so, transport and logistics are expected to play leading roles.

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The Ten years Perspective Development Plan of the Transport Sector (2020-2030) was prepared taking four pillars as its cornerstone that includes, expansion and management of transport infrastructure, effective and integrated transport and logistics services, provision of safe transport services and Institutional capacity building.

The perspective plan, has a number of insightful goals and targets, and to mention few, increasing the total length of all-weather roads from its current 147 thousand to that of 245 thousand, introducing water transport in more than 7 lakes and rivers, building more than 925kms of pipeline infrastructure, increasing the coverage of railways from its current 890kms to that of 4199kms, installing cable car transport and increasing the share of urban mass transport from its current 34% to that of 70% at the end of the decade are just some.

The successful implementation of this plan requires more than 3 trillion Ethiopian Birr. And the Ministry expects the active role and participation of the private sector play its vital roles in the form of joint ventures, PPP and private investment.

The outputs of the plan which we believe, may enhance the overall socio-

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economic status of the nation.

Rural accessibility index via road transport will get enhanced. Urban public transport and non-motorized transport options will play the leading position as far as transport provision is concerned. Ethiopia shall access public transport services with all of its neighboring states.

Regions will commence the exercise and activity to identify, select, construct and manage their own transport related infrastructures.

We shall start passenger and freight transport operations via those selected rivers and lakes including the Grand Renaissance dam. We shall have more than 25kms of cable car transport, which plays vital role to boost tourism and transportation activities. At the end of the perspective plan, total international and domestic air transport passenger number will reach around 50 million as compared to the current 10 million.

one of the lowest.

Bus Rapid Lanes (BRTs) shall play huge number of roles in realizing mass public transport services in cities like Addis Ababa. And regarding logistics services, the total inbound import and export trade of the country shall reach more than 30 million tons from its current 17 million tons. And the Logistics Performance Index (LPI) of the country will reach 40th from its current 126th. And from those cross-cutting issues, we believe transportation sector shall enjoy the contents of resilient and green infrastructure and services provision, women, the elderly and children shall enjoy the benefits of transportation services, and we shall reduce the traumatic road traffic accidents from its current highest to

Dagmawit Moges: It is well known that Ethiopia is the largest landlocked population in the world. Though it’s landlocked, luckily Ethiopia is also in a position to access most of the available ports in its neighbors, which makes the country land linked rather than locked. As it is said, Ethiopia has been searching for better options to access seaports in neighboring countries, and of course has signed agreements to develop ports there. So far, the port of Djibouti and Tajoura both in Djibouti, Port Sudan and Berbera port of the Somaliland, have been used by our country to access port facilities, and carry out its own international trade. The Port

Overall, while implementing all the contents of the perspective plan, we believe the transportation sector shall benefit the society equally and would create linkages and economic integration, supports and speed up the economic development, attain accessible, efficient, integrated, effective and reliable and safe transportation system.

ABN: As a land-locked nation, Ethiopia is searching for options to access seaports in neighboring countries such as Kenya, Somaliland and Eritrea, and has signed agreements to develop ports there. Would you please describe how it’s going?

How does this agreement benefit our country mainly in terms of facilitating import-export?

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of Djibouti has been the largest port which we are utilizing for both import and export trade, accounting more than 95% of the bulk.

But yet, as Ethiopia is a big country stretching more than 1000kms both north-south and west-east directions, depending solely on certain port facility would make it difficult to bring trade, enhanced investment and increase import and export trade. As Ethiopia also has diverse natural and geographical settings, the due location of population settlement, spatial distribution of industrial parks and major locations of agricultural, mining and manufacturing hubs and spots need diverse trade corridor to have effective and efficient trade, foreign exchange earnings and trade facilitations.

In our National Logistics Strategy, enhancing the utilization of ports and transit corridors has been identified as one of the methods for establishing an efficient and effective logistics systems.

Hence, the strategy suggests, it’s desirable to increase the utilization rate of existing corridors and have alternative/additional corridors through well-established agreements with neighboring countries.

So based on this notion, Ethiopia has continued its effort to establish agreements with port owning states, so as to help us diversity our access to port facilities. The process of adopting agreements and utilizing the services offered may need several evaluations, as to identify which port is providing better and reliable services and of Modernizing Transport April 2021

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course with a competitive price and technological applications.

In addition, as we chose any port facility, the issue of road and rail infrastructure, the presence or absence of warehouse facility and dry ports should also be considered.

Moreover, as we choose any port facility, we also check the peace and stability of that offering state, which is a basic requirement to select and utilize the port facility it has. As Ethiopia has now plans to expand its manufacturing and agricultural outputs and as we have plans to increase the GDP share of the mining sector too, the need to have specialized port diversification may directly or indirectly depends on these and other related socio-economic parameters and indicators.

ABN: What major changes have been carried out at the 16

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Ministry Headquarters since the introduction of the national REFORM? (In terms of structure, resources, project management, etc.)

Dagmawit Moges: The Ministry of Transport was formerly established to supervise transport, postal and communication services in the centralized manner. The historical chronology of the Ministry has been associated with the merge and dismantle of the sector with postal and communication services. But as of now the Ministry of Transport is an independent executive organ of the Federal Government which has mandates related to ensuring the integration, efficiency and accessibility of transportation services; preparing of sector based priority plans; ensuring the establishment and implementation of regulatory frameworks to Modernizing Transport April 2021

guarantee the provision of reliable and safe transport services; regulate transit services related to import and export of goods; and ensure that the national logistic system is efficient and competitive; and investigate aircraft accidents and other related duties.

Over the past three years, since the introduction of the national reform, the Ministry has undertaken series of steps related to organizational structure and mandate, manpower allocation and development, ergonomic office layout improvement and enhancement of working conditions, enabling ICT based service systems and so forth.

During this reform period, the National Transport Policy was finalized and put into effect; In addition, 4 sector policies are being prepared and more than

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10 strategies and guidelines have been implemented in the road and transport sectors, including National Logistics Policy and Strategy, National Non-Motorized Transport Strategy.

In terms of structure, the Ministry was able to reorganize its organizational structure and hence it has now three sector specific state Ministers under the Minister.

In addition, each state minister has its own sector specific bureaus and directorates. The Ministry has also more than 12 support unit directorates. As the Ministry has 10 accountable institutions, the basic philosophy of the Ministry’s organizational structure emanates from the basic themes of road infrastructure, roads transport services, maritime and logistics, railways infrastructure and services as well as aviation.

The ministry has short span of control of its directorates, and bureau heads and directors are empowered to exercise and execute any decision related matters.

Moreover, the gender balance of bureau heads is now 50/50, showing the Ministry’s due attention to gender balanced decision-making practices. The Ministry and its accountable institutions has more than 13000 temporary and permanent employees.

ABN: The main challenges in project management in the Ministry is said to be lack of sound project monitoring and evaluation.

If so, what corrective actions are Abyssinia Business Nework // ABN

designed to be taken to effectively and efficiently complete projects in the sector?

Dagmawit Moges: The National Transport Policy of Ethiopia states that developing human resource is important for the proper execution of the Transport Policy. Taking the vastness of the sector and the number of human resources the sector absorbs, 18

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it has become important to treat human resource development under a separate section. Unless the sector is supported by human resource development, it will be hardly possible to meet targets and attain goals. Therefore, it is believed that not for the general project management, but for the entire transformation of the sector, the most important tool

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that we shall utilize is our human resource that we need to work on bringing detailed capacity building activities tailored to the respective professions.

Regarding project management specifically, it is well known that the Ministry of Transport is responsible for the effective implementation of dozens of transport infrastructure and

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Getting Image service-related projects. For instance, for this 2013 Ethiopian budget year alone, the total budget allocated for the roads infrastructure and maintenance projects is around 61 billion birr which is nearly 13% of the total government budget allocation. It is believed that unless the Ministry has a strong project monitoring, support and evaluation team,

it would hardly possible to bring project efficiency both in time and cost. In addition, as we are seeking to bring sustainable, green, resilient and socio-economically robust infrastructure developments, it would also be difficult to consider the success of any project without valuing these interrelated indicators.

Furthermore, as we have lots of strategic interventions, goals and Abyssinia Business Nework // ABN

targets in our ten years perspective development plan, the Ministry requires a well advanced, well equipped and of course has clear cut mandates in the aspects of project planning, monitoring, support and evaluation endeavors. Hence, the Ministry has now completed an organizational arrangement study to lead these related activities under a bureau.

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Formerly the Ministry has a plan, budgeting monitoring and evaluation directorate with few professionals in it.

But the new bureau will be equipped with sufficient professionals and resources, and will amalgamate related directorate activities such as policy formulation and monitoring, Plan preparation and budgeting, project monitoring, support and evaluation, Change Management and international and regional agreements coordinating unit. Establishing this bureau is believed to bring significant results in the planning, project monitoring and evaluation activities, which we trust may further strengthen the Ministry’s execution and regulatory capacity.

In addition to creating a robust institutional framework, the Ministry is now establishing a data warehouse within itself and Ethiopian Roads Authority, which we believe may ease the project monitoring and evaluation activities that may equip us with better data, scientific analysis, and accessing real time data of projects undertaken.

ABN: Speaking of the green economy or environmental protection, what does the Ministry intend to incorporate in its program to achieve the national and global protocol in environmental protection endeavors?

Dagmawit Moges: Ethiopia has been a leader on climate change action in Africa and amongst developing nations across the world. Ethiopia is now more than committed to tackle climate change through transformative economic development approach that focuses on low-carbon growth and green economy driven by sustainability.

One could simply observe this commitment by the actions that we have been implementing in recent years. Starting from the recent more than 9 billion trees planting campaigns in just two years, till the study and implementation of the national Climate Resilient Green Economy (CRGE) Strategy document and Transport sector’s own CRGE strategy document, all aimed to realize a more sustainable, resilient and green Ethiopia.

The transport sector’s CRGE strategy was also formulated very recently in 2018, with the overall focus and objective aimed to support the creation of an affordable, integrated, safe, responsive and sustainable 20

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“We shall have more than 25kms of cable car transport, which plays vital role to boost tourism and transportation activities. At the end of the perspective plan, total international and domestic air transport passenger number will reach around 50 million as compared to the current 10 million.”

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transport system that enhances the environmental, economic, social and cultural wellbeing of Ethiopia’s population. The strategy’s focus is on reducing exposure of human health, safety and the environment to the negative impacts of transport pollution; and reducing GHGs from the country’s transport network.

Based on this framework the Ministry of Transport and the Federal government has been engaged in various activities to tailor and implement those forwardlooking initiatives and targets set in both the national and transport sector CRGE strategy documents.

environment. Some of the strategies formulated in the policy paper may include; rehabilitation of forests affected during the construction of transport infrastructure, strengthening environmental impact assessments prior to construction, preparation of transport standards in compliance with the CRGE strategy contents, encouraging the provision of transport services operating using renewable energy sources, put in place a sub policy to determine the maximum operating life of imported vehicle and support the private sector to engage in automotive industry to setup assembly units.

“We should also end the belief that traffic accident and its related death is unavoidable, which we can avoid through campaigns, learnings, institutional arrangements, enforcements, engineering, and enhancement of post-crash cares.”

● Increasing the total electrified railway length from its current 890 kms to that of 4,199kms; ● Introduction of Non-motorized transport systems such as walking and cycling to Ethiopia’s 69 urban centers with population of above 50,000; ● Construction of additional 1,650 kilometers of express ways, which significantly improve efficient transport connectivity, that hugely reduces fuel expense and related emission levels; ● We have envisaged to increase the rate of urban mass transit from its current 34% to that of 70%, which is expected to reduce the high influx of small vehicles in urban centers; ● In addition to the current ongoing BRT project, Addis Ababa city will have more than 7 BRT lanes in the coming years; ● Increase the capacity of Addis Ababa’s LRT passenger number from its current 75,000 passengers/day to that of 200,000/day

Strengthening the transport sector’s resilience by improving overall system in planning, implementation, coordination and efficacy, making the sector more robust and adaptive in the face of climate risks and vulnerabilities has been the priority agendas and tasks of the ministry and its responsible accountable institutions. This continued commitment has been reflected again while preparing our National Transport Policy document, Non-Motorized Transport Strategy and even our ten years Transport sector’s ten years perspective development plan.

Our national transport policy, which becomes operational, few months ago, has highlighted the transport sector’s strong bind and considerations towards safeguarding and protecting the natural

Besides the policy formulation and implementation, in line with the CRGE strategic documents; we have now implemented the ten years perspective transport sector plan which envisages to increase the transport infrastructure network of the country and advance transport operations.

Among the targets set out;

In doing all these, in the coming years, we have envisaged to reduce Green House Gases emitted from the transport sector from 41 million tons of CO2 equivalent to that of 27.8 million tons of CO2 equivalent. And in doing so, we believe we are in the right path of both national and global protocols in environmental protection endeavors.

ABN: Briefly tell us about how the Vehicle Free Road ’and “endersalen” and “pagumen to pagumen”was initiated and its impact on safety and health?

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Dagmawit Moges: The “endersalen” and “pagumen to pagumen” campaigns are generally started with the general notion that leading a decent lifestyle in our cities and towns relies on how far we bring the attention of using our streets for peoples’ need rather than allocating the greatest share of land for motorized transport modes. Besides, the Ministry strongly believes that no one should die from traffic accidents that we simply could avoid.

Residents of Addis Ababa and other Ethiopian towns should have a voice when it comes to transportation services, and safety concerns, especially those non-motorized ones such as cycling and walking. We should end all attitudes, ill practices and actions that so far gave much attention to streets for vehicles, just at the expense of all non-motorized city residents. We should also end the belief that traffic accident and its related death is unavoidable, which we can avoid through campaigns, learnings, institutional arrangements, enforcements, engineering, and enhancement of postcrash cares.

We chose safe and comfortable and socializing roads for people, not because we do not like vehicles, rather its giving priority to humanity’s evolving desire to live in a well-connected, healthy, safe and green cities. Streets has to serve the growing urban population demand. As cities are getting concrete jungles than any time before, the desire to bring open spaces and streets for leisure, sports and socialization activities is becoming a new norm. And of course, this is the right norm we should follow and act, as a human being who needs strong connections with natural settings and environments. And of course, 22

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Getting Image connecting with nature asks a more natural oriented modes of transport; cycling and walking.

One great lesson we learnt during this COVID Pandemic season is, having non-motorized transport alternatives and provision of decent public transport is not only a matter of demand and supply of transport services, rather it is even a tool to shape up our health practices. As Ethiopia favors prevention of diseases than cure, one great way to reduce the aftermath of such kinds of pandemic, is to provide decent and healthy mode of transportation to our public. If we have enough pedestrian ways, cycle lanes and plenty of decent public transport modes, then it is easy to reduce the vulnerability rates of the pandemic among city dwellers.

We have witnessed a surge of walking as a mode of transport during this pandemic. Due to shortage of public transport facilities, following the reduction of passenger numbers per vehicle, we have witnessed a significant portion of urban residents especially in Addis, started walking as an additional mode of transport.

Although near to 60-70% of the city’s residents uses walking as a form of transport in normal days, yet the city has scarce amount of complete pedestrian routes with good amenities to serve easy walking practices. Our ministry and the city government have learnt the importance of this mode of transport.

Due to this the Addis Ababa city government has now planned to construct hundreds of kilometers of descent pedestrian and cycle ways in the coming three years. Besides, our Ministry has planned to make each last Sunday of the month as day of non-motorized transport practices that eventually change the attitude of the public regarding street use and non-motorized transport practices.

Ethiopian urban residents should be well aware of the benefits of non-motorized transport practices, and call upon investors and donors to collaborate with us to support and engage in this vibrant initiative. Investors should be encouraged to bring or assemble

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low-cost cycles, and engage in public transport modalities that uses renewable energy sources.

High level government officials, city mayors, regional heads and those concerned planning stakeholders, should come together and really work hard to reduce urban congestion and pollution and bring the benefits of non-motorized transportation that enhances mobility and accessibility in our cities and towns too.

The only best way to enhance transit in our urban centers from now on is to bring sustainable mobility practices. Sustainable transport practices such as walking, cycling, and other related activities are good enough to become sustainable because they are pollution free, easy, economic and accessible to any urban resident.

And the “endersalen” campaign as the word itself tells, speed is the detrimental reason for most of traffic accidents and its related aftermaths in Ethiopia. Although Ethiopia has the smallest vehicle number of around 1.2 million as compared to other populous nations of its equivalent, yet traffic accident in the country is one of the highest. Over the past years near to 4000 people

have been dying annually with this avoidable atrocity. Our roads condition, low level of drivers training, enforcement capacity related challenges, and above all speedy driving have been the reasons behind this outrage. The Ministry of transport believing the dire socio-economic consequences of this increasing accident rate, has formulated and activated several actions and initiatives especially in the past three years, which we believe may reduce the fatality trends.

Among the major activities done apart from street “endersalen” campaigns and related events, for instance, the process of acceding to UN Road Safety Conventions and ratifying the African Road Safety Charter have been initiated; a strategy for enhanced financing of road safety is being developed; and the framework for the National Road Safety Commission, which is envisaged to be operational in the near future, has been developed.

The Commission will strengthen the enforcement of existing rules, regulations, and laws and ensure consistency in their application across the country.

In

addition,

Ethiopia

has

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introduced changes in taxation of imported vehicles. In this regard, newer vehicles that meet the required UN safer standards fall in lower tax brackets than older ones that do not meet these standards.

The Federal Transport Authority has also initiated the installation of speed limiters in heavy and public transport vehicles. The Ministry of Transport is reviewing the existing road safety related laws and regulation, which shall be updated during 2021.

The road safety related training and educational programs have commenced to enhance the technical skills of the relevant stakeholders. At national level the road safety sensitization programs are conducted regularly using mass media for the road safety awareness campaigns.

ABN: What’s your vision in the nation’s transport sector?

We are envisioning a transport sector that competently contributes to enhance economic development, realizing a convenient, efficient and safe transport system and ensuring an accessible, reliable equitable and efficient transport infrastructure development and operations.

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Winning the Marathon

By Aklile Tsige Ethiopia’s automotive market is obviously dominated by second-hand imported vehicles – particularly commercial which were Ethiopia’s second most valuable import overall in 2019, worth US$955 million. On the other hand, commercial vehicles are also Ethiopia’s highest earning automotive export, according to various sources.

History has it that Ethiopia saw the first locally assembled commercial vehicle by AMCE-IVECO. Following this path, according to a recent data from the Ministry of Trade and Industry, nearly 20 car assembly firms are operating across the country.

Founded in 2009, the Marathon Motor Engineering, Plc. is one of the vehicle assemblersin Ethiopia, 100% founded and owned by Ethiopians, an indigenous Auto company.

Since establishment the company has been headed by Melkamu Assefa, Founder, CEO and Managing Director,Proud Ethiopian, Married to Tigist Getachewand father of three children. Melkamu has got an extensive educational and professional experiences in the automotive industry, received his 1st Degree (BA) in Business Management – Addis Ababa University, MBA from Leicester University, UK; he’s certified from a Japanese Automotive professional firm.

Melkamu has also served in the renowned automotive company, MOENCO in Ethiopia for over 14 years. Furthermore, he has received different trainings and participated in high level convention and international conferences in more than 100 countries.ABN Editor-in-Chief Aklile Tsige speaks to Melkamu Assefa on the company’s ten plus journey and future plan.

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Melkamu Assefa

Founder, CEO and Managing Director

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Humble Beginning

All began when the renowned world athletics icon Haile Gebreselassie and the current Marathon Motor and Engineering /MME/ founder, CEO and Managing Director, Melkamu Assefa met and discussed the idea of working together on automotive industry in September 2008. That was a very difficult moment to embark on such a business as there was severe scarcity of foreign currency at home due to the then global economic crisis.

However, it was also time that our athletics hero Haile Gebreselassie achieved a mind-blogging win in Berlin; he became the first human being in history to finish the 42 KM in less than two hours and four minutes, clocking 2:03:59.

Melkamu remembered that he couldn’t find a better name for their new venture than “Marathon”, which could sum up their values, ambitions and goals. Thus, the company was named after this remarkable and historical name.

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Marathon Motor Engineering plc. has linked with the famous international automotive brand called Hyundai; and so is Haile Gebresilassie. Hyundai is an extremely dynamic, achievement-oriented and competitive; and so is Melkamu Assefa. It’s so smart to bring these three forces together to establish a valuable trend-setting company whose values align with that of Hyundai’s: constantly striving for enhancement in design, performance and systems.

Melkamu recalled that MME’s journey together to contribute to our nation has only begun with the vision of ''Aiming to be the Best Customer Centric Auto Retail and Assembler Company''. Hyundai’s slogan "New Thinking, New Possibilities" always pushes us towards availing innovative benefit to our esteemed customers and helps us earn their trust.

Hence, it cooperates with Hyundai running the erected automobile assembly plant in Nifas SilkLafto, Addis Ababa, which had been inaugurated in February 2019.

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FACTS ON HYUNDAI

“

4th largest manufacturing of vehicles in the world.

Operates the world’s largest.integrated automobile manufacturing facility in Ulsan. S Korea.

In 1967 Hyundai exported 6 units of first model of Pony to Ecuador in exchange for banana.

Hyundai is the fastest auto maker company to achieve 100 million units.

In 1986 it launched its excel compact Cars in the USA. Current design philosophy is known as “fluidic sculpture” inspired by nature.

“The main success of MME is not financial strength but high level of professionalism, the trust and confidence of our customers in Hyundai and our company. Being open minded and outward looking with always "Can Do Attitude" is our life journey.

In addition, Haile, whose courage and all –time winning spirit gives me the determination and full time commitment” Reiterated Melkamu.

“Our invisible and very satisfying achievement is the job we are doing for humanity and dignity-the corporate social responsibility we have tried to manage. The more we stretch our hands the more prosperous we would be. That’s what we believe.”

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Starting its race with ten million birr capital, few office equipment and small room 11 years ago, it seemed very difficult to compete with other similar Auto firms with considerable and massive financial and logistics capacity. Nonetheless, MME has unexpectedly managed to become a leading and preferable assembler in the country. This, in deed, attributes to its customer-oriented, auto repair and far-sighted vision.

“We have built confidence in bringing dead and forgotten Hyundai vehicles to life. I could say we have established car clinic, making them to appear in public.” Said Melkamu, adding that the Korean brand Hyundai is currently the most contemporary and extraordinary automotive company that is believed to have created a platform for knowledge transfer from Korea to Ethiopia, and a revolution in the car market.

In order to maintain its marathon pace, MME has built the state-ofthe-art- Saris 3S facilities as per the new Graphic Design Standard Interface of Hyundai Motor Company which is well-equipped with technical training center, employee first aid room, modern canteen and much more.

According to Melkamu, Marathon Motor Engineering is committed to providing more possibilities to its esteemed customers as long as the nation’s regulatory and legal framework allows the company, stating that the company will trade-ins cars born for Ethiopia, supplied by and serviced by MME, leasing option for short-life projects, facilitate financial and credit schemes in partnership with banks, test drives and many more services.

In 2019 MME reset its vision to be a Trend-Setter Automotive company in East Africa. More importantly, in the next two and three years it plans to fully abandon gas driven vehicles and embark on assembling electric cars with varieties of model and size.

This typically Ethiopian car assembler has dealt with different corporate social responsibilities across the country. At the onset in 2011 MME managed to build up two mobile clinics at a cost of 20 million birr in order to help combat malaria and HIV/AIDS pandemics in rural parts of Ethiopia.

The company has also donated big van to support efforts in facilitating the construction of the Grand Ethiopian Renaissance Dam /GERD/ besides providing various financial and technical support to people in need, and alleviating some societal problems witnessed across the nation.

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MME has provided training for young interns of Universities & TVET’S is fundamental & it is always in top of our plan and set as our life journey. MME has been providing internship in its four well equipped technical Training centers for years & creating/offering job opportunities.

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Marathon Motors, Haile Gebreselassie, has assembled its first Hyundai electric car. And the long-distance legend presented the car as a gift to Prime Minister Abiy Ahmed.

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The company, in support of the national Traffic/Safety awareness campaign, has sponsored a morning traffic radio show since 2013 on FM radio to create road and traffic safety awareness as well as to prevent damages and fatalities caused by traffic accidents. Furthermore, upon an inaugural ceremony of thestate-of-the-art Vehicle Assembly Factory Donated Hyundai H1 12-seat minibus for Addis Ababa City Administration Social Trust Fund to support street children in February2019.

Following Ethiopian Government’s call for COVID 19 pandemic preventive support, Marathon Motor Engineering, Haile &Alem International and Great Ethiopian Run has donated on one and half million Birr (Birr 1,500,000.00) on 27th March 2020. In line with similar mission MME along with Hyundai Motor Company donated 27,000 N95 high quality personal protective masks that were imported from the Republic of Korea.

“Our invisible and very satisfying achievement is the job we are doing for humanity and dignity-the corporate social responsibility we have tried to manage. The more we stretch our hands the more prosperous we would be. That’s what we believe.” Melkamu noted.

Many people in Ethiopia view a career in auto sales as a job filled with long hours and the need to employ hard closing techniques.

However, a career in auto sales can be very rewarding. According the CEO, MME provides consultancy service to people or companies who want to buy vehicles; they are required to put trust on the company whether they buy or not.

Those who are successful in auto sales understand that their success is not dependent upon the brand of car that they sell. Success is based upon their ability to build rapport with their customers. The days of fast-talking, hard-closing sales professionals is over and have been replaced by the need for professionalism, courtesy, and service.

Anyone assuming that a career in auto sales would be nothing more than a good way to practice closing skills will find little success and much frustration. Hence, it’s to be understood that an automotive company is not an automotive company if it is only running a showroom, but it needs to have the following three major components: sales of vehicles or mega show room, supply of spare parts and workshop/vehicle clinic. In this regard, MME is a modern company that fulfills all these required facilities, gearing towards ensuring customer satisfaction and trust.

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Car of the Future

Electric Car “A single vehicle whose life time ranges from eight to ten years is likely to emit an estimated amount of two tons of carbon dioxide into the atmosphere. Thus, producing and using electric cars which have zero-emission can significantly contribute to the national efforts to combat environmental pollution and climate change.”

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Well-known that the world embarks on combating global warming through various mechanisms, working on green development activities with focus on building green economy, so does Ethiopia.As of July 2020, Marathon Motor Engineering already started assembling the electric Hyundai Ioniq. Currently, Marathon Motor Engineering is assembling 14 models of cars with Hyundai brand which makes it the first of its kind in East Africa.

The car can be charged at home can travel 304 kilometers after fully charged. In addition, a 50 kilowatts portable charger can also charge the car fully in 30 minutes.“Although it was hard to convince people in promoting and introducing our first electric cars that the nation had not seen before, MME made attempts to clarify what needs to be done; we have explained that there is household charger just like the charger we use to recharge our cellphone.” Noted Melkamu.

Electric cars are becoming more main stream, and MME isunlikely alone in wondering whether an electric car is right for it. As the technology supporting electric cars (EVs) and batteries continue to improve, drawbacks such as high cost, limited range, performance issues, long charge time, and a dearth of charging stations are fading away.

Electric vehicles are an essential part of the UCS plan to cut the nation's oil use in half in twenty years. Instead of searching for a gasoline station with the cheapest prices, people can charge at home at a cheaper and much more predictable cost.

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for Ethiopia.

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Clean and renewable hydropower dominates Ethiopia’s energy generation mix, contributing around 90% of the installed generation capacity. The electricity tariffs are also very favorable, with residential tariffs at around $0.06/ kWh. Driving EVs in Africa is a whole lot cheaper than driving ICE, . A study by AfricanEV reveals just how good driving the Hyundai Ionic EV and several others can be in Ethiopia.

The Hyundai Ioniq has been well received in Europe and in other markets where it has been launched. A lot of pundits have been impressed with its efficiency.

Bjorn Nyland gave the Ioniq a very glowing review. Another critically acclaimed EV is the Hyundai Kona, and to show that the transition to electro mobility is happening much faster than most people think.

“A single vehicle whose life time ranges from eight to ten years is likely to emit an estimated amount of two tons of carbon dioxide into the atmosphere. Thus, producing and using electric cars which have zero-emission can significantly contribute to the national efforts to combat environmental pollution and climate change.”

When the production of the car increases, Marathon Motors also aims to install charging stations across the country like gas stations.

As MME CEO disclosed the company will recently launch a new electric model along with quick charging apparatus. However, he said this new technology demands the cooperation and integration of various stakeholders such as

the Ministry of Transport, Ministry of Finance, Ministry of Revenue, Ethiopian Electric Utility or Service, Ethio telecom, land Administration Departments and other relevant organs.

Speaking of the hazards gas engines caused, Melkamu noted that electric cars are already proving to be cleaner than vehicles running on petrol.

As the share of electricity from renewable sources is set to increase in the future, electric cars will become even less harmful for the environment.

A study released by Greening Ethiopia has recently disclosed that the capital Addis Ababa accommodates 4.89 million tons of carbon dioxide, out of which 1.38 million is from residential houses and 1.4 million is from road transport sector while the remaining amount of this toxic gas is emitted from waste products and the like, according to Melkamu.

He further illustrated that a single vehicle whose life time ranges from eight to ten years is Abyssinia Business Nework // ABN

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likely to emit an estimated amount of two tons of carbon dioxide into the atmosphere. Thus, producing and using electric cars which have zero-emission can significantly contribute to the national efforts to combat environmental pollution and climate change.

Marathon Motor has invested half a billion birr on the assembly plant that has the capacity to assemble 10,000 cars per annum.

In Ethiopia currently about half of the population of the country, around 50 million most of them in rural areas,do not have access to electricity. Major cities including the capital, Addis Ababa are also been experiencing power outage frequently.

With regard to human resources, MME believes that its advancement lies on the competence and proficiency of its employees. So the company is committed to enhancing human development through continuous in-house trainings and experience sharing opportunities.

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size. As taxes in Ethiopia are cumulative, excise tax is calculated on the customs duty, surtax is charged on top of the excise tax, and customs duty and final VAT is calculated once the surtax, excise tax and customs duty have been added.

Imported vehicles may cost as much as three times the retail price of the vehicle outside of the country.

“MME has made splendid move in the automotive industry in Ethiopia, and now seems to be winning the marathon race as it envisions to produce every single component of vehicles locally at cottage industry level, creating job opportunities for many citizens.”

During the past decade, a number of leading international automotive companies have carried out market scoping exercises to assess the viability of Ethiopia as an assembly hub.

However, due to the limited market size, largescale investments by these automotive firms have not yet materialized, according to sources at the Federal Investment Commission.

Due to Ethiopia’s tax system, which subjects vehicles to tax depending on their engine size rather than age or origin, it is often cheaper to import a second-hand vehicle with a smaller engine size than it is to assemble a vehicle locally, despite import taxes on these vehicles.

Despite being home to the continent’s second largest population, the overall automotive market size remains small in the short to medium term for current and prospective assemblers and producers. However, Ethiopia’s strong government support for industrialization and the development of auxiliary industries coupled with a large cost competitive labor pool, and sizeable investments in infrastructure (both physical and economic) could position the country favorably for automotive manufacturing in the long term to service both the regional and domestic market with price 34

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getting Image competitive vehicles. To achieve this, clear definitions of local content need to be developed.

The country’s high tax rates on vehicles reduce the affordability of vehicles, especially given the low income of the population, and restrains the vehicle retail market.

To address this, industry stakeholders should support the establishment of vehicle financing solutions, in order to encourage wider vehicle ownership. Taxes should be revised to also take the age of vehicles into account in order to provide incentives for locally produced vehicles, according to MME CEO. Many strongly believe that government regulations, tax inconsistencies, production output, shortage of road access, and the lack of foreign currency, finance for the purchase of trucks and running an assembly plant are

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keeping the development level of the automobile industry low in comparison to other developing countries.

MME was considered as high tax payer right after 2years of its establishment. MME is a 12 years old young company, within the past 11 years it has been engaged and contributed to the overall socio-economic development of the nation. The company was awarded silver medalin 2011and Gold medal in 2012 from the Ministry of Revenues.

Since the survival of any business depends on customer, the main purpose of every business should be satisfying its existing customers and attracting a new customer. In this regard, MME is striving to meet the needs of its customers who are mainly private businesses such as hotels, non-government organizations, private investors, hospitals, celebrities and higher educational institutions.

According to Melkamu, the longterm plan is not to remain as the sole importer, distributor and assembler of Hyundai brand, butMarathon Motor Engineering

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aspires to become Africa’s largest car manufacturer through tariff protection and by increasing the number of assembling plants, coming up with uniquely Ethiopian engine car called Africar.

Over the past ten plus years of service delivery MME has made splendid move in the automotive industry in Ethiopia, and now seems to be winning the marathon race as itenvisions to produce every single component of vehicles locally at cottage industry level, creating job opportunities for many citizens.

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Gift Real Estate:

Giving Gift

By Aklile Tsige The Black’s Law dictionary defines real estate as something that includes the land and anything fixed, immovable, or permanently attached to it such as buildings, walls, fixtures, improvements, roads, trees, shrubs, fences, roads, sewers, structures, and utility systems. Real estate, therefore, can be defined as a property comprised of land and the buildings on it as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water and minerals.

Even though most refer “real estate market” to only mean residential living, it can however be grouped into three broad categories as: residential, commercial and industrial. Residential real estate can include undeveloped land, houses, condominiums, and townhomes. Commercial real estate on the other hand can include office buildings, warehouses and retail store buildings. Whereas, factories, mines and farms can be categorized as industrial real estate.

Many argue that the advantages to owning real estate are substantial. Real estate is a tangible asset that can provide income you don’t have to work for.

Real estate values frequently appreciate. You can buy with borrowed funds, so you can control an entire property while only paying a fraction of its cost.

Today, the Ethiopian Real Estate market is hotter than ever, especially after the new reforms being introduced in every sector of Ethiopian society. These reforms have reignited the real estate market in Ethiopia due to the ever growing demand for homes from both the local population and the Diasporas.

Gebreyesus Igata is the Founder and Managing Director of Gift Business Group Plc., which is running sister companies, includingone of the leading real estate companies in Ethiopia-Gift Real Estate Plc. He has got over 40 years of experience in trading; he’s an industrialist who earned MBA in International Leadership. Gebreyesus has taken different trainings on business development, and travelled to more than 45 countries to attend conferences, exhibitions and B to B meetings.

ABN Editor-in-Chief Aklile Tsige sat with Gebreyesus Igata, to discuss the thirty plus years of company’s successful journey, challenges and the way forward.

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Gebreyesus Igata

Founder and Managing Director

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Throw back It was in 1991 during the Dergue Regime’s Free Market Economy landscapethat Gebreyesus Igata who has developed his business skills early in his childhood, established Gift Trading Private Limited Company that still remains one of the reputed trading companies in Ethiopia,with a total start-up capital of 350,000 ETB. Gift Trading Plc. which takes its name by acronyming Gebreyesus Igata Family Trading,is a dynamic and fast growing business enterprise mainly engaged inimport-export& wholesale distribution, commission agent as well as construction and manufacturing. The company’s main product line includes: All grades of bitumen (asphalt), wood glues, nails, wall Paints, deformed bar C.R. Sheet, constructions chemicals, automotive tires, car batteries, home and personal consumables, office furniture and supplies, and other general commodities.

The company decided to produce and substitute imported goods at home, and opened a nail factory some twenty two years ago after securing 10,000 sq. m of land in Addis Ababa. Gift Trading Plc. gradually engaged in construction and purchasing of various buildings to undertake its flourishing businesses, stretching almost in all parts of the country.

Officially established in 2004,the umbrella of this family business-Gift Business Group had been working on trade business for many years, and is made up of Gift Trading, Gift Construction, GNM Industries, Gift Building Materials, Gift Nails Manufacturing Plc., Gift Property Management Plc., and Gift Real Estate Plc. Gift Real Estate A major business force already successful 38

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in the trade and manufacturing sector, Gift Trading Plc., has expanded its operation into the real estate arena by establishing a subsidiary- Gift Real Estate Plc. This came into being in response to Addis Ababa City Administration’s call for curbing residential houses problem in the metropolis.

As an affiliate company, Gift Real Estate enjoys the unparalleled reputation of its parent company.

It offers comprehensive real estate development services from selection of site to construction and property management.

Gift Real Estate has now concentrated its efforts and resources towards the development of a prestigious real estate complexes to address the growing demand for both residential as well as commercial properties. It is fully committed to fulfilling its customer’s dreams by providing them with luxurious yet affordable houses.

“We are now working round-theclock to complete the massive construction at Hayat site, embracing modern and exquisite buildings with all necessary facilities such as supermarkets, offices, children’s playground and parking lot.”

Gift Real Estate has begun its operation after securing 16 hectares of land at CMC and Hayat areas with three sites. The first site the company started its construction is located opposite to Addis Africa

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International Convention and Exhibition Center construction site, building different villas at a cost of 150 million birr.

Targeting middle-income citizens, Gift Real Estate has built variety of houses behind Tsehay Real Estate at a cost of 500 million birr, and delivered the houses to buyers with colorful ceremony attended by Government high level officials.

“We are now working round-the-clock to complete the massive construction at Hayat site, embracing modern and exquisite buildings with all necessary facilities such as supermarkets, offices, children’splayground and parking lot.”

Said Gebreyesus Igata, Gift Business Group Founder and Managing Director. He added that this construction is estimated to cost 3 to 4 billion birr upon completion, and will be one of the most fascinating and breath-taking villages in the city.

Gift Real Estate plc. doesn’t look for most construction inputs outside its business group; its sister companies like the grade-1 contractorGift Construction have been engaged in subcontract tasks and supplying building materials such as aluminum frames, wood works, cement and cement products, pipes and other materials required for the construction of houses.

Group’s Managing Director, Gebreyesus noted that as human resource and finance are the most important engine of a business company, Gift Real Estate pays due attention to human resource and professional development through attracting talents, designing succession plan, and providing employees with different on-job trainings.

According to JD Esajian, the importance of customer service in real estate should never be second guessed. Real estate investing is unquestionably a customer service industry, and the way in which investors communicate and interact with clients will ultimately determine their long-term success. Because the majority of investors tend to look strictly at their bottom line, the one aspect commonly overlook is customer service.

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Real estate investor should seriously consider developing a customer service mission statementfor their company. While a conventional mission statement aims to articulate a company’s core purpose to the public and provide direction for the future, a customer service vision is meant to be shared within the organization. It serves as the foundation for any strong business, representing what the company stands for, why it exists, and how all employees can play a part in that vision.

The Managing Director said, “Gift Real Estate is a customerfocused company that values the needs, interest and demands of its customers; we do provide them with multiple options in types, size and location of villas while giving them chances to supervise and follow-up the construction process of the houses they are anxious to see their completion.”

Direct access to a public road, or access to an internal road that provides communication with the public road, are a factor affecting the value of real estate. In addition, this factor is taken into account in the process of changing the function of the area, especially in determining zoning and land use. The decision of purchasing real estate often depends on transportation accessibility, because it has an impact on developing the selected plot.

“I am usually wondering what I do for my country; we hold firm belief that private businesses should participate in the nation’s overall socio-economic endeavors. We are dealing with all these social responsibilities with pleasure.”

In this regard, Gift Real Estate plc. has initially embarked on selecting sites that are accessible to road transport. “All our real estate construction sites are easily accessible to transport service; we know that access to transport determines the value of our products.” noted Gebreyesus.

As stated by United Nations Industrial Development Organization/UNIDO/,Corporate Social Responsibility/CSR/ is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.

In this sense Gift Real Estate has from the onset dealt with various corporate social responsibilities in the country.” We are

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very proud to support the construction of the Grand Ethiopian Renaissance Dam /GERD/; we‘ve donated a villa estimated to be worth 4 million birr and purchased a 2-million birr bond.”

Gebreyesus indicated.

In response to COVID 19 pandemic prevention, Gift Real Estate plc. has been engaged in awareness raising campaign and provision of necessary sanitary materials to people in need and vulnerable to the virus.

With regards to establishment of new tourist destinations which is part of national development effort, the company has donated five million birr each for Gebeta Lehager and Gebeta Lesheger projects; it has also provided chairs and tables to poorly operating schools in order to help change

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inconvenient school climatein Addis Ababa.

Gift Business Group, as life time member of the Ethiopian Red Cross Society, has donated an apartment intended to be sold by auction in support of the construction of its headquarters at the heart of the capital, Addis Ababa; moreover, the company has donated millions of birr, taking part in almost all telethon calls for supporting development projects in various regional states of the country.

The company has actively been participating in Green Legacy initiative across the nation. The Managing Director said, “We

have now plan to develop a green area nearby our site at a cost of four million birr in addition to financial assistance we provided to Addis Ababa Greenery and Beautification project.”

“I am usually wondering what I do for my country; we hold firm belief that private businesses should participate in the nation’s overall socioeconomic endeavors. We are dealing with all these social responsibilities with pleasure.” Said Gebreyesus.

He also disclosed that Gift Business Group wishes to establish a charity organization aiming to support orphans in a sustainable manner, and continue to keep giving gifts to the community.

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Challenges and Way Forward A recent report on real estate by Access Capital indicates that there are both challenges and opportunities in the real estate sector in Ethiopia. The key obstacles facing the sector include land policies, the scarcity and cost of construction materials, infrastructure, and financing. In terms of opportunities, the report highlights the potential of four segments of the real estate market: city-centre commercial developments; residential developments, including apartments, focused on middle income groups; new developments based on innovative and cheaper construction materials; and commercial parking developments.

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Plc., the major challenges it faced at the beginning was lack of infrastructures such as water, electricity and road access. Boundary dispute was also one of the bottlenecks to legally secure land for the construction of houses; community members nearby the real estate development site were complaining and arguing over ownership of land despite government clearance of such issues.

“I know what I didn’t accomplish is more than what I did; I have to go a long way. I need to create significant job opportunities to my people. I wish I could hire 10,000 or 20,000 citizens.

That’s what I am reaming of.”

The Managing Director stated that marketing and promotion of the business was found to be a challenge.

“We had to go to overseas especially in Europe and North America, to promote and convince the Diaspora to buy our built houses; we were, in fact, successful in our marketing and promotion campaign there. 45% of our customers are Diasporas.” He added.

There are actually challenges in the availability of material – you cannot 42

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“I am usually wondering what I do for my country; we hold firm belief that private businesses should participate in the nation’s overall socio-economic endeavors. We are dealing with all these social responsibilities with pleasure.” get the quality or quantity needed. There is also a need for skilled and unskilled laborers. You can see there is a lot of construction going on and everybody needs skilled and unskilled laborers, and the company needs material.

There are no particular factories here for producing construction material.

Private investment in the real estate sector is expected to grow in the coming years, according to various sources.

There are a number of factors driving this. These include (i) overall economic growth (as real GDP has grown by an average of 10.8 per cent Modernizing Transport April 2021

per annum in the last 10 years); (ii) demographics (the urban population continues to rise and the population of Addis Ababa is expected to more than double by 2040 to reach around 8 million); (iii) a long history of unmet housing demand; (iv) the expansion of city roads and infrastructure.

By 2030, Gift Real Estate envisions being a leading real estate company in Africa in delivering top quality products and world class high tech services in real estate and hospitality. Their ownership of manufacturing industries targeting the construction of homes and buildings has helped them pass down the reduced cost of sourcing materials on to their clients,

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thereby providing costs that are considered fair in the industry.

Successfully completing the construction and delivery of houses at both sites, CMC area, which is currently booming and a hotspot for new home owners, the company is now striving hard to finalize the Hayat site construction project in its short-term plan.The availability of beautiful scenery is a plus as the homes are located on elevated surfaces providing the home owners with a vista view. Green areas, playgrounds, shopping venues and common parking provide more perks for their clients.

Gift Real Estate Plc., Founder and Managing Director recommended that Ethiopians need to develop good habit of working hard; it’s only through hard work that people can get out of abject poverty and descent life, adding that the Federal

Government should also pave ways to promote job creation for the growing number of youth across the nation.

He explained that the Government and other stakeholders should avoid overlybureaucratic schemes and poor governance in order to establish an enabling environment for the public to engage various types of entrepreneurship and business channels, adding that policies and directives should be very clear and convenient to attract more private investors.

With regards to the nation’s transport sector development, the Managing Director indicated that Ethiopia is lagging behind the time in terms of modernizing and availing transport services both in quality and quantity.

Thus, he recommended that great emphasis should be

placed on the expansion of quality road construction, revision of government’s laws, regulations and policies on vehicle taxation, and promotion of private investors to engage in the sector.

“I know what I didn’t accomplish is more than what I did; I have to go a long way. I need to create significant job opportunities to my people. I wish I could hire 10,000 or 20,000 citizens. That’s what I am reaming of.” Gebreyesus noted.

The company now seems to be committed to developing and delivering quality and affordable residential and commercial real estate facilities to middle and high income groups, provide modern property management and related services, and play critical role in the overall real estate development venture, and ultimately contributes its role in overall economic development of the country.

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ERF: Backing Road

Construction

By Daniel Tirune /ABN/

Established in 1997 via a private-public partnership, the Ethiopian Road Fund /ERF/ aims to serve as a financial platform for road maintenance and road safety measures. ABN talks to Rashid Mohammed, Ethiopian Road Fund Office Director on overall activities of the office and road related issues Rashid Mohammed earned BA Degree in History from Addis Ababa University (1995) and MA Degree in International Politics and Security Studies from the University of Bradford (UK) in 2004, MA degree in Transformational Leadership and Change from University of Greenwich (UK) in2011 and MSc Degree in Transportation Engineering from the University of Hasselt (Belgium).He has got over 25 years of professional experience in various locations in Ethiopia in various capacities. His previous experience as head of various bureaus and as Vice President of the Benishangul Gumuz Regional State entails, leading and coordinating developmental works, human resources, assets and budget management.

His current position as a Director of Ethiopian Road Fund office entails mobilization of the resource and ensuring its judicious application for the maintenance of the roan in the entire country. Coupled with these experiences, He has served as a President of the African Road Maintenance Fund Association, which has 35 member countries and Chairperson of the East African Focal Group of ARMFA at different times.

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about 70% of the Road Network of the country is a relatively good condition as the result of maintenance, rehabilitations and reconstruction of different roads.

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”

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Rashid Mohammed

Ethiopian Road Fund Office Director

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ABN: Tell us briefly what Ethiopian Road Fund has been doing since its establishment?

Rashid Mohammed: The Ethiopian Road Fund is a government organestablished by an Act of Parliament No.66 of 1997. The organization’s principal mandate is to mobilize,administer and manage financial resources aimed at covering the cost of routine and periodic maintenance of public roads, facilitate delivery of road maintenance services and other related matters bestowed upon the Fund by proclamation that established the Road Fund.

In the light of this fact, since its establishment the Fund has collected more than 22 billion Ethiopian birr and allocated the same amount for the maintenance of Federal, Rural and Urban Roads, managed by the Ethiopian Roads Authority, Regional RuralRoads Authorities and Urban Roads Authorities respectively. The designated Agencies utilized the budget for the maintenance of more than 500 thousand KM of roads. Besides, the Road Fund has financed expenses of Road Safety Measures and different capacity building programs aimed at enhancing the performances of the Road Agencies. When it commenced operations in 1997, the annual budget of the Road Fund was not more than ETB 300 million Ethiopian Birrand by now the 46

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annual collection of the Road Fund is close to 3 billion Ethiopian Birr.

ABN:What are the objectives of the road fund, what is its legal status, where do the revenues come from, and which expenditures does the road fund finance?

Rashid Mohammed: Overall transport cost minimization is commonly stated as an economic objective of any transport development program of a country.

Total transport cost includes the costs of Road construction and maintenance, vehicle-operating cost, and any other external or third party costs of transport that are associated to the society at large and the environment.

Road maintenance cost, as part of total transport cost, is one major determining factor for the upkeeping of Road asset value of every country.

For many years, the Governments were spending a huge amount of resources for the construction of roads, without any attention to the maintenance of constructed roads.

Consequently, due to deferred maintenance, in the 1990’s out of the existing road networks; 52% were in a poor condition while 22% were in a relatively good condition. Literally, the country lost most of its road network. This in turn has caused: a huge backlog of road maintenance works, high vehicle operation costs, long travel time, inflated transport cost and negative influences on the overall Modernizing Transport April 2021

social and economic development of the country.

This circumstance dictated the necessity of a paradigm shift in the policy direction of the road sector in general and road maintenance in particular. Accordingly, the Government of the Federal Democratic Republic of Ethiopia, in collaboration with developmental partners, initiated a reform program in the Road Sector with the intention of overcoming the overall challenges encountering the road sector.To this end,starting from 1996 through the involvement of the concerned stakeholders, the Road Sector Reform Program was initiated.

The Road Sector Reform Program adopted the four basic building blocks of the Road Management Initiative (RMI) that defined the basic issues dealing with the Ownership, Management,

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getting Image Financing and Responsibility of the Roads. Within thepremise of these Initiatives, the Road Fund came into picture as Financial Platform aimed at managing the road users’ charge which would be collected as a fee for services that the road users pay for using the roads. As such Ethiopian Road Fund was established by Proclamation N0. 66. 1997, to serve as an adequate, reliable and timely source of funding for road maintenance and road safety measures of Ethiopia.

Stated sources of road Fund revenue, as per to the proclamation, are Government budget, Fuel levy, Axle weight based vehicle license renewal fee, overloading fines and any other Road Tariff as may be fixed and approved by necessity. The Road Fund finances the routine and periodic

Rashid Mohammed: As a kick of step of revenue collection, fuel levies on a pre-determined rates on petrol and diesel, was effectively collected since September 1996.

Fuel levy rates at which collection is made are 9.5 cents/liter of gasoline and 8.0 cents/liter for diesel. The proclamation (66/97) in its article states that fuel based revenue to Road Fund shall be collected by Ethiopian Petroleum Enterprise and directly deposited to the specially maintained Central Account of Road Fund. Besides, the fuel levy, the government has decided to allow the Value Added Taxes and Municipal Taxes levied on fuel to ABN: What revenue-raising be part of the Road Fund to serve as mechanisms are used, how is the the top up of the fuel levy. tariff adjusted, what sort of tariff structure is used, are there any This decision was initially meant to exemptions, and how is the revenue serve as a proxy to the Government Budget support to the Road Fund collected? maintenance expenditures for roads under maintainable conditions and Road Safety measures. The Road Fund, is not mandated to execute the maintenance works by itself, but rather through the Road Agencies that are established to manage different types of Roads, namely Ethiopian Roads Authority for Federal Roads, Regional Roads Authority for Rural Roads, Municipal Roads Authorityfor Urban Roads for maintenance of roads and National Road Safety Council for Road Safety Measures.

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and a subsidy to cover the gap between need based maintenance expenditures to that of availed Road Fund budget. However, sometimes, the practice proved otherwise as the Ministry of Finance withdraws some portion of this revenue, whenever, there is a felt need to do so. The other source of revenue is the Axle weight based vehicle license renewal fee, which makes about 10% of thetotal collection of the Road Fund. The collection of this revenue source has been delegated to the Ethiopian Postal Service, and it is collecting this revenue through its more than 700 branches located throughout the country. There are some categories of vehicles such as those owned by the military and those which are providing Ambulance services are among the few which are exempted from the payments of this fee.

ABN:How is the road fund managed, what is the structure of the road fund board, and how are funds divided between main, urban and rural roads?

Rashid Mohammed: The Road Fund is managed by a board comprising both private and public sector representatives. Currently the Road Fund board is composed of Federal and private sector members having equal voting power with a two year ex-office round term bases. Membership to the board is either by appointment or election from the public or private sectors respectively. As clearly stated on articles of the proclamation, the composition and size of the board is to be fixed 48

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getting Image by the government. Regular board meetings are taking place at fixed intervals on quarterly bases, unless and otherwise there is a need to call for an extra-ordinary meeting.

The day-to-day activity of the fund is administered by a small secretariat office, which operates as a legal entity as determined by articles of the proclamation. Powers and duties as well as responsibilities of the board and the office are clearly stated and demarcated onto the proclamation.

The board mainly deals on policy matters, program review, budget Road Fund in Ethiopia: From Inception to Realization approval, performance report evaluation and budget allocation agenda points.

Board discussion and decision is basically referring to technical reports of the office with due reference to performance reports of Road agencies.

It is a normal practice for reports to be accompanied by physical and financial performance of Road agencies. The office, in general, is in charge of follow-up actions on day-to-day bases for routine matters to effect the implementation of the Board decisions and directives.

The office liaises with beneficiary Road Agencies regularly with regard to physical and financial Modernizing Transport April 2021

performance reports.

This will be followed by follow-up action on implementation of set programs and extend support to resolve problems that are found to be obstacles on progress of work. Proportional distribution of allocated fund is based on study recommendations of the maintenance action plan of the Road Sector Development Program and as per the subsequent endorsement by the board.

Currently the proportional allocation is in order of 65% for Federal, 25% for Regional and 10% for Municipal roads.

ABN: What kind of financial accounting systems are used, how are funds withdrawn from the road fund, how are revenues disbursed to end users, and what kind of auditing is carried out?

Rashid Mohammed: Transfer of payments, effected basedon payment certificates approved by the consultants hired by the Road Agencies to certify payments and control the quality of road maintenance works as well as adherence of the Road Agencies to the annual plan of road maintenance activities. Designated Road agencies receive their annual budget share from Road fund

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provided that they produce the annual Road maintenance works program for review and following approval by Road Fund board.

Redistribution of budget by Road segments, within the sealed ceiling budget, and operational expenses is to be worked out in detail by each Road agency. In this regard, it is the responsibility of the Road agency to prioritize, allocate budget by Road segment or Road safety activity. The plan of action has to be accompanied by detailed physical works program and financial cash flow requirement to each activity. Once the annual physical works program and financial plan is approved, the road Fund Office effects transfer of payments to the respective agencies based on the payment certificates approved by consultants. . For transfer of payments, the major pre-requisite or requirement, being production of physical and financial performance reports as per to developed format. This is to be followed by an assessment for satisfactory progress and report based performance evaluation within the framework of approved annual program of the Road Agency. More to the point to ensure, value for money all the beneficiaries of the Road Fund and the Central Account of the Fund are subject to annual financial and technical audit conducted by external auditor on a regular basis.

ABN: What are the greatest achievements of the Fund?

Rashid Mohammed: Since its establishment the Road Fund has made tremendouscontribution to the improvement of the Road Conditions of Ethiopia. To cite some of the

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achievements, the Road Fund the came into picture as part of the package of reform programs within Road Sector Development Program, augmented by comprehensive approach followed in program execution, the Road Fund establishment gets sufficient towards effecting and hence of the Road financing reform process.

Following the establishment of the Road Fund and implementation of other reform programs identified in the Road Sector Development Program, about 70% of the Road Network of the country is a relatively good condition as the result of maintenance, rehabilitations and reconstruction of different roads. In this context, the Road Fund contributed more than 20% of the Road Sector disbursements in the last 2 decades.

Moreover, when the Road Fund started functioning in 1997, the annual revenue of the Fund was 300 million birr whereas now the annual revenue of the Road Fund is about 3 billion Ethiopian Birr. On the other hand the annual coverage of maintenance works during the establishment of the fund was about 3000 Kilometers whereas today the Road Fund Finance maintenance works of more than 40 thousand Kilometers.

In a nutshell, the Road Fund has contributed a lot in making most of the roads that were impassable to be passable, and as the result of maintenance works the vehicle operating costs decreased besides reducing the travel time on many roads of the country. The Road Fund also contributed a lot in enhancing the material and human resource capacities of the Road Sector.

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ABN: What about the challenges?

Rashid Mohammed: The challenges are the imbalance between the required maintenance Fund and available budget as some of the trunk roads and most of the rural roads are at the end of their life span & need rehabilitation.

Therefore this shortage of budget as the existing amount does not stretch beyond covering 60% of required budget amount will continue to be a challenge to the Road Fund. Furthermore, the capacity problems of the road sector in general is affecting the quality of works, ensuring value for money as well as realizing the efficiency and effectiveness of the Road maintenance works.

ABN: The rehabilitation of road networks and the buildup of institutional and financial capacity for their maintenance are the single most important challenges confronting transport planners and policy-makers in Africa. What about the case in Ethiopia?

Rashid Mohammed: As you have rightly pointed it out, the institutional setup of fully fledged road maintenance system and availing adequate financial resources for road maintenance works, have not been the characteristics of many African Countries. And this problem continued to challenge transport planners and policy makers. The major causes of this problem emanated from the perception of these countries towards the road maintenance works. Many countries do not have a culture of maintenance.

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Countries that lack a culture of maintenance repair roads when they fail. They do not perceive the advantage of preventive maintenance undertaken before there is a need for repairs. Sometimes, preventive maintenance is even thought to be a waste of resources. The belief is that pavements are designed to be rehabilitated after a certain time, irrespective of whether maintenance is done. It is not understood that pavement design assumes ongoing maintenance, and that neglect of maintenance leads to a premature need for expensive rehabilitation.

On the other spectrum in many countries of Africa, Politicians want to build new roads. For them Capital expenditure and ribbon cutting win more votes than keeping roads in good condition. In fact, letting pavements collapse wins votes when they are rebuilt. And the public mistakenly thinks the remedy for bad roads is renewal, not maintenance. Accordingly, even when the road budget is adequate for proper maintenance, maintenance can still be inadequate, because of capital bias.

I think a solution to the problems of long term sustainable funding of road maintenance is to introduce a genuine user charges and to establish a robust Road Maintenance Funds to manage the collection and expenditure of the revenues. Despite

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some of the differences in the levels of success in the Road Sector Development Programs between Ethiopia and other African countries, Ethiopia can still learn from success and failures of other countries and realize the efficiency and effectiveness of its road sector in general and that of road maintenance in particular.

ABN: Economists generally criticize road funds on the grounds that they constitute earmarking and hence introduce fiscal inflexibility and undermine the principle of unified budget management, what’s your view on this?

Rashid Mohammed: I think some of the criticisms on the Road Fund, emanates from misconception about the Road Fund and what it does. In this context some argue that the Road Maintenance Fund’s revenues should remain within the national accounts, as a ring-fenced corner of the Consolidated Revenue Fund (CRF) in the Ministry of Finance, because this makes the national accounts look healthier. However, Experience (from first generation road funds that used to be part of the Ministry of Finance) shows three potential problems with this approach of making the Road Fund part of the Ministry of Finance. First, the Road Maintenance Fund’s revenues are vulnerable to being raided and used for other purposes.

Second, while ring fencing may be respected, the funds may not be released, and may accumulate, starving maintenance, while adjustments are made by rebalancing the apportionment between road user charges and taxes.

Third, the Road Maintenance Fund may not receive all the revenues due to it:

intra-government cross-debts during economic downturns have resulted in state-owned petroleum companies retaining revenues collected on behalf of the Road Maintenance Funds of many countries.

To put things in its proper context, those who criticize the Road Fund should understand that it is More than a bank account to hold revenues from user charges; the Road Fund is also an institutional arrangement for administration of the revenues and promotion of efficient road network maintenance, to a standard that road users want and are willing to pay for, by collecting the road tariff and allocating funds to road agencies that comply with Road Fund standards for sound planning and execution of works. I think the Chinese proverb which says "No matter if it is a white cat or a black cat; as long as it can catch mice, it is a good cat." May be a good response to those who have a negative view about the Road Funding system.

ABN: Many complain that Ethiopian road network coverage and standard are of poor quality. What’s the reason behind?

Rashid Mohammed: Being an optimist one can appreciate the milestones achieved in the Road Sector. In 1997, the country had a road network Abyssinia Business Nework // ABN

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amounting to about 30 thousand kilometer which shows the overwhelming majority of the Ethiopian Population did not get access to roads until that time.

Currently, the country’s network is more than 130, thousand Kilometers. In this regard, in the last two decades besides improving the conditions of the road network, the center of gravity was creating access to the majority of the people, who have been isolated from the rest of the world due to lack of accessible roads. This move has helped many to bring their produces to the market besides getting access to the social services and economic development that changed their lives.

ABN: What should the country do to meet the demand of both regional and federal road access?

Rashid Mohammed: The Ethiopian Government has come a long way in implementing the Road Sector Development Programs.

However, the efforts gave more emphasis to capital intensive new construction and rehabilitation of roads. On the other side, maintenance of existing roads did not get the attention it deserves.

Accordingly, the Road Fund should exist not only in format but also in substance. In other words, the Road Fund should be empowered to the extent that will enable it to serve as a sustainable source of adequate financial resources for the maintenance of all categories of roads in Ethiopia.

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Road Traffic Accident on

the Decline in Addis

By Daniel Tirune /ABN/

Road traffic accident (RTA) is an incident on a way or street open to public traffic, resulting in one or more persons being injured or killed and involving at least one moving vehicle. Road traffic accidents have become a huge global public health and development problem killing nearly 1.2 million people a year and injuring or disabling between 20-50 million people worldwide.

RTAs are major public health problem in Ethiopia. The magnitude of trauma caused by RTA had been increased day to day. Urgent road traffic accident preventive measures and prompt treatment of the victims are warranted to reduce morbidity and mortality among the victims of the road traffic accident. Education on the proper use of sideways by pedestrians and periodic Vehicle examination should be given due emphasis by Government especially by transport minister and Federal police in collaboration.

A very recent road traffic accident report has revealed that the number of accident fatality rate has gone down by 17% in the nation’s capital, Addis Ababa. ABN speaks to inspector Assefa Mezgebu who has served his nation as a traffic police, public relation officer, road safety teacher and related works for the past many years.

He was famous for his regular reporting on road traffic accidents in the capital via FM 97.1 and 98.1 radio stations, and currently Assefa is running his own radio show, featuring road safety and related issues.

Road traffic accident reporting in Ethiopia seems to have a very recent history. With the emergence of FM radio stations in the capital Addis Ababa in early 2000’s came reporting traffic accident on regular basis, encompassing number, types, magnitude, causes, places and timeof traffic accidents. Assefa is believed to be pioneer in reporting timely RTAs via different FM radio stations.

Assefa said, “As compared to other African cities, traffic accidents in Addis Ababa where 60 to 70 percent of vehicles in the country are found, is insignificant. Also as per WHO measurement the fatality or 52

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injury rate in the capital is found to be in a good state; however, more than 400 people in the city die due to car accident every year; there are still a long way to go to avoid such causalities.”

Road traffic accidents not only adversely affect the livelihood of individuals but also their family members, as it can lead households into poverty via the enduring effects of the episodes: the costs of medical care, treatment and loss of family’s income generators.

in urban areas,”

“Speeding, drunk driving running red lights and stop signs, reckless driving and aggressive driving are among the major causes of road traffic accidents

Road traffic accidents are usually caused by flaws in three major components of road safety such as the human (the behavior of man), the environment, and the vehicle

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Road traffic accidents have also a gigantic impact on national economy by consuming the already inadequate resources, damaging invaluable property, and killing and disabling the productive age group of the community. In general, the severity of the problem is becoming horrific shockingly and reaching a catastrophic level showing that sufficient work has not been done to control and/or reduce alarming rate of the accident.

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Inspector Assefa Mezgebu Road Safety Expert

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(the means of transport). The human component includes characteristic of road users such age, sex, education level, socio-economic status, attitudes and general traffic behavior: driving behavior, driving experience, driving style, risk compensation and risk driving (use of alcohol and drugs).

The environment factor encompasses “the natural and the built environments as well as transport networks”. The means of transport component comprises of “the volume, composition, age, and quality of vehicles (technical condition and safety equipment) on the modes of transport.” Deviations among any of these elements cause road accidents. The systems approach is supported by a system of traffic laws controls, and regulations designed to ensure road users obey and follow the laws and regulations of traffic flow for sustaining road traffic safety.

Most traffic accidents don’t necessarily have to do with knowing how to drive a vehicle but more so which decisions the driver makes behind the wheel. In fact, about 94% of all road accidents are caused by human error, according to Car Accident Blog Posts 2020.

At some point, a number of drivers will find themselves guilty of committing some of the most common causes of traffic accidents.

However, heightening awareness for these causes can further educate and hopefully influence drivers to be more cautious on the road.

Assefa said, speeding, drunk driving, running red lights and 54

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stop signs, reckless driving and aggressive driving are among the major causes of road traffic accidents in urban areas, adding that aggressive driving that encompasses any combination of traffic offenses that endanger other drivers or property, including speeding.Sleepiness, drowsiness, or downright exhaustion can impair a driver’s ability to competently respond, react, or discern conditions on the road.

Public transport takes the lions share in incurring road traffic accidents in Ethiopia. This attributes to many factors that include lack of proper traffic management system to control the flow the traffic, lack of appropriate trainings for public transport drivers and irresponsible vehicle owners’ who hand over their cars to unskilled, careless and irresponsible drivers.

Most road crash victims in urban areas are not motor vehicle occupants, but pedestrians. About 33.5 per cent of fatal crashes in the country in 2018 occurred in an urban road environment and mostly involved pedestrians. For instance, in Addis Ababa about 88 per cent of road traffic fatalities are pedestrians.

While more than two-thirds of all traffic accidents occurred among rural residents, urbanresidents have an elevated injury rate. This is likely due to the higher volume of traffic andhuman mobility in urban areas. Moreover, crash injury andfatality rates are higher Modernizing Transport April 2021

in rural than in urban areas.

Assefa lauded the one-year-long Road Traffic Accident Awareness Campaign launched by the Federal Ministry of Transport, but he reiterated the need to institutionalize the national road safety measures, ensuring transparency and accountability at all levels that are responsible for establishing smooth, safe and sustainable transport system across the country.

He also stated that road traffic management system has to be technology-based, incorporating modern cameras and related information, communication and technologies.Data is essential for modern traffic management — having it, analyzing it, and sharing it.

“There are endless repercussions: families break up; high counseling costs for the bereaved relatives; no income for a family if a breadwinner is lost; and thousands of dollars to care for injured and paralyzed people.”

It works on a regional level, allowing road operators to prevent or reduce congestion, detect and respond to incidents, and share data with drivers through traveler information systems, websites and even the media. With landlocked freeways and right of way issues, we can’t build our way out of gridlock. But. We can get more out of existing roadways with more efficient, cost-effective ATMS solutions.

As far as issuance of driving license is concerned, Assefa noted that use of modern technology in training, testing and issuing license for drivers is very significant to curb challenges in producing ethically

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getting Image and professionally-built drivers and others found on the line of traffic management system, adding that private driving training centers need to be carefully monitored and controlled since they are using undesired automotive technology and unethical personnel.

The road network has an effect on crash risk because it determines how road users perceive their environment. In this sense, the roadway provides instructions to the road users on what they should be doing. Negative road engineering factors include those where a road defect directly triggers a crash, where some element of the road environment misleads a road user and thereby creates human errors.

According to Assefa, roads standards and quality do have significant impact on road traffic accidents; lack of timely maintenance of ruined roads and lack of feeding roads are some of the major problems being witnessed in road construction sector. Traffic lights and road signs are not clearly installed or posted in most part of Addis Ababa where traffic congestions are common during rush hours.

Government at different levels is

responsible to ensure road safety.

Given the scarcity of resource, authorities at various should give due attention to the transport sector (which is a life blood of the economic development) and effectively play its role in reducing road traffic accidents. For example, due to lack of resources or misuse of resources, in low income countries, poor road networks with no devoted area for pedestrians or non-motorized vehicles contribute to countless fatalities.

Governments at various levels can also reduce or control road traffic accidents by effectively enforcing traffic laws and regulations. Simple negligence in law enforcement can lead to horrifying accidents.

For example, like most African countries Ethiopia seems to rely on unregulated taxis or buses, which frequently encourage speedy driving (‘a sluggish taxi driver makes less trips and thus less money’), use under-serviced vehicles and disobey existing traffic safety regulations and cause devastating accident.

As economy progresses, the need of government intervention and commitment to ensure road safety will increase due to the fact that Abyssinia Business Nework // ABN

developing countries high level of motorization and so facing a higher road traffic accident risk. All of these issues can be easily understood and examined via political ecology approach.

The human suffering for victims and their families of road traffic–related injuries is incalculable. There are endless repercussions: families break up; high counseling costs for the bereaved relatives; no income for a family if a breadwinner is lost; and thousands of dollars to care for injured and paralyzed people.

Authorities should be willing to focus on and consider the transport and road accident risk as a development problem (element of poverty reduction) in addition to a public health problem. This is evidently a question of economic development which requires high commitment of authorities in allocating the available recourses in optimal manner and using it efficiently so as eliminate road traffic accidents and poverty.

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Humble beginning

Easy Technologies plc.is one of the fastestgrowing tech-enabled start-ups headquartered in Addis Ababa, Ethiopia working with several professional permanent and temporary employees. The company has applied its in-depth domain of expertise to deliver various ICT-based solutions ranging from designing and implementing of core network infrastructures system.AwadYunus Chairman, Easy Technologies plc. shares his company peculiarity, experience and future endeavours with Abyssinia Business Network/ABN/

Founded by two visionary and ambitious young individuals Easy Technologies plc is currently engaged in empowering technology based solution for the population. As a technology company they believe Challenges in Ethiopia faced can be dramatically simplified. After some research they figured out 5 key sectors in which they could work on projects that can yield great impact: Telecommunication, Transportation, Delivery, Digitalization and payment system.

a big challenge for their business not to continue as usual and normal. Thus, they focused on creating value for the public in this moment of hard times.

They have begun to deliver goods, focusing on food, and sanitary productsand more to the public residing in all corners of the capital, Addis Ababa. This service has stretched its wings to delivery of magazines and newspapers to homes and offices.

“We believe we have done our part as a company on those hard times". AwadYunus co-founder recalled.

“We set out to solve few of the problems to elevate our city. As it’s a company that aims to make Ethiopia Convenient, Digital and Green.”

Currently the company portrays as Customers are at the heart of everything they we do. The company currently has developed 5 mobile applications and integrated to various services in the city. Customers can have access to delivery services, mobile top up, transportation services and Digital publications.

They stated small in Telecommunication.

After operating for 6 months as it has impacted other businesses the corona virus pandemic hit Easy Technologies plc. as well. This created

“Creating convenient spot, digitalization and green. This could be interns of visuals as well as how we work in the city.

We believe green economy is the future and we have ambitious plans to create green digital city for local and foreign tourists.”

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"We set out to solve few of the problems to elevate our city. As it’s a company that aims to make Ethiopia Convenient, Digital and Green". green. This could be interns of visuals as well as how we work in the city. We believe green economy is the future and we have ambitious plans to create green digital city for local and foreign tourists.” Said Dr. Hindia Mohammed, co-founder

The company is working on a payment solution that is expected to deliver international standard mobile payment service. “We set out to solve few of the problems to elevate our city to the highest level as it’s a company that aims to make Ethiopia Convenient, Digital and Green.” said co-founders AwadYunus and Dr. Hindia Mohammed.

Recently the company have launched a product called Easy Shelf is an online and offline publication distribution platform, where users can find Books Magazines, newspapers and other publications. It enables publishers to distribute their content digitally without time and geographical constraints. This new service that has proven its capacity and service quality in a short time is now making Ethiopian books, magazines and newspapers available for international community.

The company believes this will have huge impact in terms of reducing the use of paper. This is impact full in a country like Ethiopia where the population is large. Hence, there next mobile app is going to simplify all of the services and products in to one single platform.

Addis can have face lift in the following three areas “Creating convenient spot, digitalization and

“

Currently the company has created job opportunities for about 30 citizens. But through its apps more than 100 people use to generate as a revenue source as part time and full time. Further they are working on increasing the numberto 10,000 in the next 1 year. Furthermore, the company is currently in process of using fully electric bikes for delivery to reduce fossil fuels. Having a user of more than 30,000 people the company believes this is just a beginning.

Expressing their vision GM EkramYunus noted, “We believe a city is a single entity that works in harmony. Addis Ababa being the capital city of the nation, Africa and seat of various regional and international organizations has a lot of opportunities and problems altogether.

"As we are moving to a digital and ever changing world, we, as a city need to do so.” Added to this, The Company plans to create 2,000 direct jobsand 100,000 indirect jobs,digitize the city in providing products and services online, and introduce the city to electric cars and charging stations. Further it elevates the city’s beauty and makes Addis Ababa tourist-friendly destination.

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Exclusive

Coca-Cola: Keeps Refreshing

By Aklile Tsige /ABN/

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.

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Photo by Sol Image

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Throw back

History has it that Coca-Cola began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s

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Daryl Wilson

Managing Director Coca- Cola Beverages Africa (CCBA) Ethiopia

partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca Cola” as well as designing the trademarked, distinct script, still used today.

Prior to his death in 1888, just two years after creating what was to become the world’s #1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the majority of the interest sold to Atlanta Abyssinia Business Nework // ABN

businessman, As a G. Candler.

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.

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Among the biggest challenges for early bottlers, were imitations of the beverage by competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at 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.

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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

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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 CocaCola volumes sold in Africa. The CocaCola 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 subSaharan 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

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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 fastmoving 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.

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Coca-Cola in

Ethiopia According to the vision statement of the company, CocaCola 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.

Coca-Cola Beverages Africa (CCBA) in Ethiopia operates the East Africa Bottling Share Company (EABSC) as well as Ambo Mineral Water Share Company (AMWSC).

EABSC has three plants in Addis Ababa, Dire Dawa and Bahir Dar and AMWSC has one plant in Ambo.

Apart from refreshing Ethiopians with quality beverages for the past 60 years in Ethiopia, EABSC aims to create greater shared opportunity for the business and the communities it serves across the value-chain.

The company’s sustainability narrative states that shared opportunity is more than just money, it’s about a better future for people and their communities, adding that the company holds the belief that doing business 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.”

Daryl Wilson, Managing Director Coca-Cola Beverages Africa (CCBA) Ethiopia stated that Coca-Cola entered Ethiopia six decades ago and has since created about 2 100 direct and more than 50 000 indirect jobs in the country and Ethiopia boasts the second-largest population on the African continent. While consumption of soft drinks is low 62

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compared to major markets, demand is expected to grow as the middle class rises and consumers are empowered with spend.

The Managing Director indicated that since 2010, CCBA has invested an estimated $150 million in 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 CocaCola 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 opportunities as we increase our effort and investment. We want to

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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.

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 Abyssinia Business Nework // ABN

”

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 Modernizing Transport April 2021

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“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.

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”

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.

Through Coca-Cola’s Replenish Africa Initiative (RAIN), in partnership with The Coca-Cola Foundation 64

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”

aims to help five million women entrepreneurs within the Coca-Cola value chain 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.

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getting Image

(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 state-ofthe-art school blocks at Shimb it 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 Abyssinia Business Nework // ABN

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 product-Coca 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 one of our products; it’s very fantastic. I don’t think there are other places we are

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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

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example, the 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.

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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 subzero 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.

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 Abyssinia Business Nework // ABN

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Pioneering

By Daniel Tiruneh BGI is the leading brewery in Ethiopia with a leading share of the domestic beer market. BGI services thousands of sales outlets all over the country, and deploys Promoters to visit and monitor these outlets regularly. Apposit worked with BGI to develop a Sales Outlet Management platform using its Connect product that allows its Promoters to record and submit all sales and service follow up data electronically. This paperless data collection is aggregated automatically, and provides real time insight and actionable analysis to management and operational departments.

BGI Ethiopia PLC, subsidiary of the Castel Group has recently introduced two new beer products in the market dubbed Doppel alcoholic beer and Senque malt, a non-alcoholic beer. Daniel Tiruneh presents a few questions to BGI Ethiopia Commercial PR Manager Gebreselassie Sefer ABN: When did BGI Ethiopia begin operation in Ethiopia and what was the motive behind its presence in Ethiopia?

BGI International started its operation in Ethiopia in 1991 after acquiring the St. George beer brand from the Government of Ethiopia.

The company expanded its footprint to the Ethiopian Market to address the need of the category consumer by offering its diversified portfolios.

By doing so, the company has also created a job opportunity to thousands of fellow Ethiopians.

ABN: Where are your export destinations?

BGI being an international company continued to expand its presence in the different part of the world.

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At present,we export to East Africa (Djibouti, South Sudan), Europe (France, Germany), North America (Virginia, Maryland, Dallas etc.), Australia, the Middle East and Israel, to mention a few.

ABN: How do you execute your marketing and promotional strategies?

BGI Marketing and Sales force work together in close collaborationto identify the business need in the Marketplace and accordingly craft relevant strategies that addresses the business gap. In addition, in-order to maintain our product competitiveness in the marketplace, our brewing experts ensure in maintaining the highest quality standards of our products by using quality ingredients supported by modern brewing technology.

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BGI Ethiopia

Brewery

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Photo By BGI

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Gebreselassie Sefer Commercial PR Manager ABN: Describe the information communication technology (ICT) being implemented in the company?

trainingsare also to enhancethe productivity.

BGI ICT is the backbone of our business in implementing steps from production to selling techniques to manpower support in a structured way.

ABN: What are the contributions of the company to the socioeconomic development, and beautification efforts being undertaken in the capital of Addis Ababa?

ABN: How do you monitor and evaluate the professional capacity of your employees at different levels?

Key-Responsibility-Areas (KRA) are defined and shared to the respective employee and will be evaluated accordingly at a set timeline. Regular

conducted employee

BGI Addis Ababa being the capital, a great effort has been doneto support the city in different areas; developing park,support in cleaning the city and on different occasion securing own land and Abyssinia Business Nework // ABN

planting trees to protect the environment.

The recently opened 'Entoto Park' has positively altered the landscape of the city with its marvelous aesthetic as well as promotion of healthy living.

It has become a culmination of household names coming together to change the livelihoods of those around the area for the better. BGI stepped up in constructing Sen'q shops, retail businesses that aim to change a towering legacy of women's poverty.

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Drawing upon the love of motherhood, these shops opened to provide job security for women whose livelihoods depended on the collection of firewood from the forest. BGI intends to take this even further by expanding this project into upcoming mega-projects in Addis Ababa.

ABN: Tell us about your new beer products. Doppel and Sen’q malt, nonalcoholic beer.How is the Market? Why are you interested to come up with such products?

BGI We have taken our time in preparing products that meet the highest quality standards, crafted within the latest technology. No resources have been spared in presenting a product brimming with excellence. To this end, in 2020 the company has introduced two a taste they will never forget. It brands Doppel and Sen’q to address the is made for consumers who are looking for a change of pace needs of the diverse consumers. in their beer preference, one of Doppel Brown Beeris the first Ethiopian bold taste.Doppel Brown Beer Brown Beer with a golden color /shade. is produced keeping in line with This makes it the eccentric and taste-rich state-of-the-art technology and product that it is.Doppel is a product innovative brewing techniques that has entered the market with a firm from the finest of ingredients. flavor in hopes to leave consumers with This is to meet the aim of

satisfying consumers to the fullest.

Bold Taste acquired through the perfect balance of fine ingredients with the 5% Alcohol content.

Sen’q is setting the trend in the Malt industry by embedding Vanilla and Ethiopian coffee for a rich taste and high quality. From the usual standards of focusing on Malt-centered production, this product takes it a step further in giving the consumer an energy boost full of flavors.Sen’q Malt Drink is completely free from alcohol and suitable for those seeking a refreshing and nutritious taste to satisfy their thirst.The source of its complementary health benefits and nutrition come from the process of fortifying it with essential minerals and vitamins. It is a taste to behold as well as one to nourish the body.

ABN: Have you faced any challenges during your

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Photo By BGI operation? If so, what are the challenges?

BGI So far, the operation is going smoothly as planned and well received by the respective consumers.

ABN: It’s well known that BGI owns and manages the Castel Winery and Vineyard located in Zeway town. Tell us about the motive behind its establishment, its productions, employees, and other related issues?

BGI In-order to put Ethiopia in the wine map, BGI Ethiopia has selectedZeway as its base due to its environment suitability and availability of sufficient water. The company has also brought wine experts from France to look over the winery. The modern farm is sited in 600 Hectare. The product portfolio includes: Acacia, Rift Valley and Prestige with 2 White, 2 Rose and 6 Red Wines. The winery has also opened huge employment opportunity for the locals and created an investment opportunity for Ethiopia.

ABN: What are the company’s key achievements?

BGI Ethiopia has been increasing itsbrewery footprintthrough the years.

Currently, we have 5 different breweries located in Addis Ababa, Hawassa, Kombolcha, Raya and Welkite. Raya and Zebidar Breweries are the latest addition.Furthermore, Castel Winery, BGI’s sister company, located in Zeway, is brewingand distributing widerange of quality wine countrywide and beyond.

employees to overcome the current health challenges in the marketplaceand to be able to serve the consumer with extra care.

As a category leader, our Breweries and Winery have created employment opportunities for thousands of local/expat employees.

BGI Ethiopia has been actively engaged in the ongoing CSR activities aimed at empowering employees, promote workplace safety, protect the environment, healthcare, education, art, sport, infrastructure, supporting disability and engagement with NGO. It will also continue to work closely with its stakeholders by timely addressing the challenges in the above sectors.

ABN: Tell us about your short and long-term plans?

BGI Ethiopia has short and long-term plans. Short term is to continue to train, equip and empower our Abyssinia Business Nework // ABN

In the long term is to put Ethiopia in the first place in the category of beer and wine in the African Map. ABN: What are the major social responsibilities BGI has undertaken so far in Ethiopia?

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Hyatt Regency:

Uniquely Ethiopian

Hyatt Regency Hotel has gained reputation for its unique archtectural presenation, interior design, facilities and hotel related services. Cluster General Manager Heddo Siebs wants to share some of its features with ABN readers.

ABN:Tell us a little bit about Hyatt Regency Addis Ababa at a global level, and the reason it began operatingng here in Ethiopia.

Heddo : what makes the Hyatt Regency brand unique is that we are energizing. We are the go-to gathering place: a dynamic spot where guests can relax, meet, engage and recharge. We are insightful. Here, we do things the smart way, not just the way they have always been done before. We are always thinking one step ahead, satisfying guests’ needs in unique, delightful and surprising ways, as they go through their day.

We are confident. We are innovators in the hospitality business and experts at providing the experiences, care and amenities our guests want, all delivered with enthusiasm and pride.

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because we have got everything covered.

ABN: Can you describe the hotel in terms of size, location and peculiarity?

Heddo : Hyatt Regency Addis Ababa is located just 15 minutes from Bole Iinternational Airport, and centrally located on Meskel Square, connecting the large artery roads of Addis Ababa. The hotel stands within a short walking distance of the United Nations Conference center and within a 15-minute drive of the African Union Headquarters, with the largest conference facilities in the country. The presidential palace, government and business offices are also within short reach of the hotel.

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The hotel building centers around a courtyard with landscaped gardens and water features while accommodating service areas from meeting venues, dining spaces to recreational areas. Hyatt Regency Addis Ababa is a service destination within Addis Ababa where our guests can confidently leave every detail to us so they can focus on what matters to them most during their stay with us.188 well-appointed guestrooms, including twelve Regency Suites, two Regency Executive Suites, one 125 sq m (1,345 sqft) Presidential Suite overlooking Meskel Square and one 450 sq m (4,843 sqft) Royal Presidential Suite with four bedrooms.

Hyatt Regency Addis Ababa is also a vibrant dining destination where guests can enjoy a range of international flavors and local cuisine without leaving the hotel.

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Heddo Siebs Cluster General Manager

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The spacious hotel lobby and its extended lounge area offers an integrated business center, a gift shop, flowers and a coffee area that serves freshly brewed, world famous Ethiopian coffee, delicious pastries and bakery items. At The Kitchen, a modern yet casual restaurant, guests can enjoy breakfast, lunch and dinner featuring authentic Levantine cuisine. At The Oriental, guests will experience a contemporary and lively restaurant featuring mouth watering barbecueue and authentic Asian cuisine complemented by attentive service.

involving many participants to discussions among only a few people, we present event spaces to share and stimulate ideas. The hotel has 1,700 sq m (18,300 sqft) of flexible and contemporary spaces with natural daylight. There is the spacious 468 sq m (5,037 sqft) Regency Ballroom as well as two beautifully appointed meeting rooms with spacious adjacent pre-function areas and an open area terrace in the main hotel courtyard. Finally, there is the 400 sqm (4,305 sqft) Meskel Terrace, overlooking Meskel Square, for dinners and social events.

Cascara Coffee & Cocktails, located in the beautiful courtyard of the hotel amidst landscaped gardens and water features, is the place to be in Addis for informal afternoon meetings and sundowners after a busy day. Recreation and relaxation are the “order of the day” at the pool and spa. After a workout in the 235 sqm (2,530 sqft) fitness center with the latest exercise equipment, pass by the pool bar overlooking the hotel courtyard for a light bite or sunset cocktail.

ABN: What do you think are the reasons customers prefer the hotel to other hotels with similar standards /grades?

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Heddo : I think guests like our vibrant social spaces as well as our cuisine. Also the wellness areasincluding the spa, gym and infinity pool are very much appreciated.

ABN : What safety measures are you taking now to prevent the spread of COVID-19 here?

Heddo : The safety and wellbeing of our guests and colleagues is always a top priority. Some of the measures include:

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ABYSSINIA BUSINESS NETWORK

ABN

• Colleague certification and training for hygiene and cleanliness • Increased frequency of cleaning with hospital-grade disinfectants on all high-touch surfaces, guestrooms and sharedspaces • Implementation of enhanced food safety and hygiene protocols for restaurants,room service and group meetings and events • Prominently placed hand sanitizer stations through out hotel’spublic and employee areas and entrances • Exploring purification and sanitization device installation in an effort to ensure enhanced airquality • Protective masks and other equipment for hotel colleagues • Physical distancing guidance in public areas across hotel properties • Guests and employees must wear face masks while they are on the premises

ABN :Would you please explain how modern technology is incorporated in the hotel’s operation?

Heddo : I truly believe that our colleagues are the most important asset in order to make a difference, and it is through them that we look after our guests.

Empathy and care are the most important tools to be successful. I always believe that the best service is always at home, since we naturally look after our guests with care and they can feel it is from the bottom of our heart, truly and naturally. If we manage to do that, and our colleagues look after our guests as they would look after friends and family at home, we are the winners.

Heddo : I believe we have to be optimistic rather than pessimistic and learn how to adapt and overcome the current challenges. As you may have already seen, Ethiopia has been featured in Forbes magazine as a rising star in travel and it is assumed that the nation will be one of the major destinations in a post-COVID world. So the ease of the lockdown and any further measures to aid the industry will be very helpful.

• Guests can book online via the World of Hyatt app and use their mobile phone as a digital key to check into their rooms • QR menus available in all outlets to avoid contact • Cutting-edge contemporary AV system • Automatic gate barrier / under vehicle scanning / face and plate recognition feature • GRMS system in place • AC system with heating and cooling features in all rooms and facilities ABN :What short-term and long-term plans do you have?

Heddo : We always strive to be the preferred hotel in Addis and a trendsetter in Ethiopia.

ABN : Nowadays the Ethiopian government seems to be planning to ease the partial lockdown of the hospitality industry very soon, and tourists across the globe are ABN:How would you describe the capacity of your expected to come to Ethiopia, how optimistic are you on that issue? employees in different departments?

Abyssinia Business Nework // ABN

Modernizing Transport April 2021

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Abyssinia Business Nework // ABN

Modernizing Transport April 2021

ABYSSINIA BUSINESS NETWORK

Abyssinia Business Nework // ABN

Modernizing Transport April 2021

ABN

Abyssinia Business Nework // ABN

Modernizing Transport April 2021