Abyssinia Business Network /ABN/ December 2019 Edition

PACCI / CEO/

2nd YEAR NO 23

ታህሳስ 2012 / December 2019

Ethiopia 50.00 birr , USA 5.00 $ , Europe 5 .00 Euro , South Africa 25.00 Rand , Kenya 500 Sh ,UAE 10.00AED

Photo by Anteneh Aklilu

Photo by Sol Image

Kebour Ghenna

E x c l u S i v e

ABRAHAM ALARO BERHAN BANK PRESIDENT

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Editorial Team MANAGING DIRECTOR Daniel Tiruneh

Chasing Franchise Hotels

MANAGING EDITOR Getachew Alemu

It is a much-trumpeted fact that next to Brussels and Washington DC, Addis Ababa has the third largest international diplomatic community in the world, partly due to the fact that it is the seat of theAfrican Union and the United Nations Economic Commission for Africa. Conferences at these international organizations have increased the demand for brand hotels.

EDITOR IN CHIEF Aklile Tsige

CONSULTANCY Zeima Ahmed

STAFF WRITERS Mekonnen Hailu Ketema Kebede Chacha Hiwot Salelew

Although licensed hotel developments have been low, the industry created direct economic impact. Its contribution to GDP has been showing remarkable growth since 2008 and is predicted to rise in the years ahead. This primarily reflects the economic activity generated by stakeholders in the industry.

Teshome Fantahun

REPORTER

Josephine Wawira Kamba Anthony Joseph Oduha

Designer Daniel Tiruheh Photo Sol Image

The growing number of business and leisure travelers, coupled with mounting hotel bookings, has captured the attention of hotel investors. Portraying another benchmark of interest, there is an increasing number of hotel investment conferences such as the African Hotel Investment Forum (AHIF), bringing international stakeholders, branded hotel developers and leaders together.

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So far Marriott, the Golden Tulip Addis, Crowne Plaza Addis, Wyndham Hotel Group, Ramada Addis Hotel, Pullman Addis Hotel and Best Western International are among the major developments.The franchising deal of Bahirdar Radisson has recently come into being in the beautiful city of Bahirdar, Amhara Regional State..

This came as good news for the country as it aspires to host over a million inbound tourists. On the other hand, according to the African Development Bank, Africa’s middle income earners are expected to grow from 355 million to over a billion in the next five decades increasing the number of travelers.

Ethiopia came a long way creating lucrative markets and resourceful local partners to attract more international chain hotels. With more investors coming to Ethiopia the future of the industry looks promising.

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CONTENTS

42 29

Unlocking

26

Gaining

Medical Sector:

44

06

10 Questions

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“

Unlocking

Free Trade

Area

By Teshome Fantahun

The African Continental Free Trade Area (AfCFTA) is a free trade area, outlined in the AfricanContinentalFreeTradeAgreement among 54 of the 55 AfricanUnion nations.[2] The free-tradearea is the largest in the world in terms of participating countries since the formation of the World Trade Organization.The agreement was brokered by the AfricanUnion (AU) and was signed on by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018.One of the advocates that have brought the idea on table was Pan African Chamber of Commerce and Industry (PACCI).

ABN’s Teshome Fantahun meets Kebour Ghenna,Executive Director of the Pan African Chamber of Commerce and Industry (PACCI) and discusses CFTA today. Kebour has presided over the Addis Ababa and Ethiopian Chambers of Commerce, the Ethiopian Business Coalition against HIV/AIDS, and the Ethiopian Red Cross Society.

The Lycée Française alumni, Kebour Ghenna has been involved in a number of sectors, such as agriculture, technology, media and education. He also served as a non-executive director of the Commercial Bank of Ethiopia, Abyssinia Bank, and the National Fertilizer Company. Kebour also has extensive experience in research and development and has been involved in numerous research projects and worked as an expert and consultant for UNECA, UNDP, WBI, IDRC and others. Kebour has written on a variety of development and governance issues.

He had also lectured at the Addis Ababa University Faculty of Business and Economics.

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The government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology…. Then we obviously can benefit from CFTA.

”

Sol Image ABN: Let’s start with the practice of working together and collaboration in Africa; how is it like?

Kebour:I think discussions began in 2013. I mean the discussions about Continental Free Trade Area started then. Between 2013 and 2018, African Governments reached a milestone by putting together and signed the conventions. In March 2018 the agreement was signed by all African countries. The result has clearly shown African countries’ willingness to integrate the economy, of course the idea is to go beyond the economy, and integrate tourism and infrastructure as well.

“The first phase of CFTA is where goods and services are given priorities in terms of negotiations.

There is also another protocol which has been signed to liberalize air travel among 23 countries.”

ABN: What is CFTA and how does it operate?

Kebour: The continental Free Trade Area/CFTA/Agreement is basically an area, in this case the continent, where goods, services, capital and people are allowed to transfer or travel from one country to another without any friction; For goods, for example,it can be

issues related to custom, tariff, professional traveling from one place to another,etc.

The process is not that simple and straight forward at this stage. The first phase of CFTA is where goods and services are given priorities in terms of negotiations. There is also another protocolwhich has been signed to liberalize air travel among 23 countries. There is also another discussion to issue an African passport which would allow people to travel from a place in Africa to another. Some countries including Ethiopia have already started issuing online

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Visa, Visa on arrival etc. So countries are really coming closer and closer to each other.

ABN: We have already known regional integrations such as EAC, AGOA, ECOWAS, COMESA, SADC and many others, so how is CFTA different from these agreements?

Kebour: The structure is quite straight forward. The regional economic commissions are the ones that practically do all the negotiations at their levels and then bring the negotiations to a continental platform where all will be integrated at the continental level. The regional economic organizations are still relevant to build the continental FTA’s.

ABN: The Agreement has been brought to a discussion, the first day the required threshold 22 countries have ratified. Within five years as you said, the agreement has been negotiated and ratified by almost all governments. How do you see the momentum and the success of CFTA at this stage?

Kebour: The endorsements have already been signed by 54 Countries.

Yet, for the implementation you need at least 22 countries and that has also been achieved in a very short time.

The negotiations as I said earlier started in 2013 and in 2017 March the first agreement was signed and the ratifications happen within a year which I would say a record time.

Looking at the momentum, you could say that the journey ahead might not be that difficult as many people think.

So the plan,I think, is really moving ahead.

The first phase of CFTA is where goods and services are given priorities in terms of negotiations.

There is also another protocol that has been signed to liberalize air travel among 23 countries.

ABN: These days again countries are closing their frontiers again, this 08 Abyssinia Business Nework

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week Nigeria has announced that it has closed the border with Benin, can we say that CFTA is being challenged?

Kebour:When you look at the world today, there is more and more a kind of thinking that CFTA is not beneficial to countries. There is a sort of protectionism whereby countries protect their businesses. The case that has happened in West Africa is probably a reflection of that attitude but I wouldn’t say. We have to be careful regarding the case in Nigeria and Benin; it is a sort of controlling illicit trade I don’t think that puts CFTAin question.

ABN: Most of the commercial transactions are dominated by few countries like Egypt, South Africa, Nigeria, Morocco, etc. People say that CFTA is not a kind of agreement that benefits smaller countries like Djibouti, Eritrea, Benin and even Ethiopia. Does this agreement serve only big economies? Who are the winners and losers of this agreement?

Kebour:There are countries that are well positioned to benefit from CFTA. They are quite a few countries benefited initially from CFTA. But overall, when we talk about CFTA it is not a mechanism to benefit all countries at once. That did not happen even in Europe. What happened in Europe was countries that were better off have allowed the transfer of funds to countries that were not better off with the objective that, in the long run, to help the entire continent. We are not currently at the level where the openingof frontiers will be somewhat difficult for countries that are aspiring to do business in the continent.

I think we obviously have smaller countries that have difficulties in

catching up the bigger onesbut that is again something that can be negotiated. When you take the case of Ethiopia, it has not really allowed. It has not agreed to liberalize 90% of its goods like many other countries of the continent. So far seven or eight countries have agreed to liberalize 85% of their produces. We have to negotiate more in order to help smaller countries and countries that need really to build up their productive capacities to arrive at a level where they perhaps compete at equal footing with others.

“The government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology…. Then we obviously can benefit from CFTA.” ABN: How is Ethiopia doing in this regard?

Kebour:There was a study done by the Ethiopian Chamber of Commerce on a sort ofidentifying the challenges and the difficulties of Ethiopian cross trade. Ethiopia has both the opportunities and challenges.

It has the opportunity to expand its exports to neighboring countries.

Until recently, it has been building a manufacturing base which would have allowed exporting many of its goods to other African countries. Until recently, it was a country that was very attractive to FDI, to investors who want to base their manufacturing plants in Ethiopia. However, Ethiopia is disadvantaged in a sense that many of its companies are quite weak so they may not be able to

Sol Image compete at a continental level.

Therefore the government should set up a strategy in order to strengthening those companies that need to be strengthened to be able to be participating to benefit from CFTA. In certain areas, local businesses need to be protected. This is the kind of strategy the government needs to study and try to work out with the private sector. So far it has not happened yet. I think it is better that these things happen ratherearlier than laterwhen maybe it is bit difficult to rectify.

ABN: Some experts talk about CFTA is not a race that rewards

most of the runners. It benefits very few countries which are faster. How do you think countries be faster in the race to benefit from CFTA? Kebour:You know CFTA is just a mechanism or an agreement which would allow countries to take benefit of low or no tariff, which would allow countries to transfer capital.

The main thing you have to do is to build your productive capacity.

Unless you have anything to sell or to export, having an agreement is not going to be much of a benefit.

Therefore the government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology; it has to improve

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schools and a lot of things need to be done. Then we obviously can benefit from CFTA. I think CFTA, for me, is an instrument that would help totally the overall business ecosystem in Ethiopia; some of the legislations have to be updated, others need to be changed, some new legislation need to be introduced. Innovations have to be encouraged. We have already the government focusing on five areas. If that is really the way to go, then these five areas should be very much supported all the way to the end so that they could benefit from CFTA. There is a lot of work that need actually to be done.

ABN:The argument is CFTA benefits SME’s and there is also another counter argument that CFTA increases cross border competitions. How do you think Ethiopian SME’s be able to compete the Giant Nigerian or Moroccan businesses?

Kebour:Today most of the large businesses and global manufacturing companies are disappearing. I think the winners these days are the smaller and more flexible, one two three person companies. They are really doing very well. There is always an opening for smaller ones providing goods and services, providing complimentary products to larger products provided by the giant ones. I mean, they even can benefit from the value chain that the bigger ones establish. There are still doors for micro, small and medium enterprises. Yet, it still needs a strategy. The government needs a strategy to bring in finance 10 Abyssinia Business Nework

A f r i c a i s o u r s .

Sol Image to smaller companies. Smaller companies in Ethiopia have difficulties in accessing funding.

This has to change actually in order to help the 90% smaller and medium enterprises.

The answer is “I don’t think

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we need really to be very much concerned about big Nigerian businesses coming here to do business.”I think if we are wellorganized, being very small or very innovative will take us a long way.

ABN: You have said many times that we need strategies to benefit from CFTA, to help SME’s etc.

But my question is who should design these strategies? Whose responsibility is to build strategy?

I mean what is PACCI doing in this regard for example? What are you doing in this regard to help governments have a viable strategy etc.?

Kebour:One of the things that I have noticed not only here in Ethiopia but also in my travel across the continent, is the departments, the ministries do not talk to each other.

For me it is amazing, for example, the Ministry of Trade has little or no contact at a professional or expert level with Ministry of Education.

Ministry of Education does not know what goes on in the Ministry of Industry and so and so on. That has to change. All the ministries have to work as one and CFTA is one project actually which they can work together. When you go to the Ministry of Industry, an expert has to be able to tell you what another expert in the Ministry of Education is doing in order to strengthening the capacity of schools graduating students in business. We need really to work in harmony. Effort has to be put to change the culture and the way, not only government-togovernment but also governmentto-private and private-to-private sectors. The responsibility falls not only to individual leaders but also I think we need really a coordinated effort that brings all these to an organization.

ABN: The most frustration fact in Africa for governments to open up I think is immigration. How is it possible for governments to open up given thousands of people migrating each day?

in their countries, therefore, we have to stand together to address all these problems. Otherwise, no German, or French or American is going to come to help us.

“One very successful company in the government hand is the Ethiopian Airlines; other not successful in the government hand-Ethio-Telecom can improve its management and its services while in the government’s hand.”

We are all in this continent; we probably have the same culture, the same level of development. We want to travel from one country to another. Some countries have already done others have not yet. We need to ask ourselves, what is the ultimate objective? The reason these people are going from one place to another is because there is perhaps no enough food or there is no security or some violence going on

ABN: The renowned global magazine-The Economist has reported this year that most of the imported goods in Ethiopia are illicit products; medicines, telephone, imported drinks, cosmetics, cigarettes etc. In its report unveiled on the 4th world illicit trade summit, it was reported that 40% of the total tobacco products are illegal.

South Africa’s illegal trade accounts for 33 percent of the total maker and is as high 43 percent in the non-organized trade, resulting in eight billion lost taxes annually. Having seen the extent of illicit trade in the continent, don’t you think contraband and illicit trade would be challenges for CFTA?

“One very successful company in the government hand is Ethiopian Airlines; other not successful in the government hand-EthioTelecom can improve its management and its services while in the government’s hand.”

Kebour:It would be a challenge.

However, again the answer is you need to have a stronger government, a government that is difficult to corrupt. Illegalities including corruption, contraband etc. prosper when they have someone in government protecting them be it a law or individuals. Some countries have already been able to reduce illicit trade with the help of CFTA in

Kebour:We have difficulties these days to communicate at regional levels. You can imagine how difficult it is going to be at the continental level. We have to start to believe on an idea, Africa is ours.

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the sense that there is no need to go through customs and get charged 100% or 200% of custom.

That disappeared due to CFTA that would in a way discourage the contraband. You have to reform your institutions at the border so that they cannot really encourage such illicit activities to grow.

The most important thing in my opinion when we accept CFTA we have to at the same time work on our institutions. We have to strengthen the institutions; we have to encourage them to speak to one another to work together. We have to bring in all governmental and non-governmental organizations to talk to each other. We have to make the government talk to businesses. I think it is something that everybody needs to participate to better address this problem.

ABN: Tell us about privatization and the businesses that the government wants to privatize.

Kebour:You can privatize businesses that can be easily (I would say) privatizable. I think that is a normal way of looking at things. The government may privatize businesses whenit thinks that the businesses are performing less than they have to. I mean the government has to be free to do other things that others are not capable of doing; for example, the 4G network installation, Biology, Medicine etc. When you call government to play a role, it is where the private sector has failed to do so. But you have also areas where things are considered strategic; strategic because they help the country develop in other areas. They bring not only revenue to you to finance to finance other 12 Abyssinia Business Nework

new developments, to finance develop new schools, to finance actually develop innovation programs etc. But also they can also bring in other companies build around major strategic companies, other sort of major technology. They have a role more than the services they provide. These companies are considered strategic therefore these companies should not be privatized. They should be reformed in one way or another.

The basic examples for us is two examples that are diametrically opposite but two companies that require technology, skilled human resource, marketing.

One very successful company in the government hand is the Ethiopian Airlines; other not successful in the government handEthio-Telecom can improve its management and its services while in the government’s hand. You may have to change individuals at the head of the organizations or the way the organization works but you don’t simply sell these businesses. Ethio-Telecom like Ethiopian Airlines can be very productive, innovative and useful. It is useful still. I mean you can make it attractive for others to join in. Ethiopian Airlines goes from Ethiopia and does business in Kenya, in France, in the United States. I don’t see why Ethio-telecom does not do business in Sudan, in Djibouti. This is by choice.

We made a choice to have this kind of telecommunication organization in Ethiopia, and that is the government’s choice.

And the government is saying I want to sell it because it is

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not performing but people have to be able to say “it is your choice that made the organization nonperforming.” The government’s decision to denationalize what was the national entity and to give it to a foreign investor has an implication on our sovereignty. It is like giving part of our sovereignty. These big companies are much bigger that the government thinks they are in terms of influence. They are once gone it is very difficult actually to get use of these companies. Telecom today is a sector that brings and disrupts work laps in financial services. Telecom plays a big role in financial services.

Within five or six years we will not have manual Banks. They should be digitalized and the main platform is telecom. Where our sovereignty then? The idea of keeping 60 or 50 of ownership is may not mean much as long as you don’t control the management of the organization.

The whole story that goes on in Ethiopia these days, political challenges within the regions, part of the regions, the language etc. should not be the main issue. The main issue is while everybody is focusing on these issues we are losing the most important things for the country smoothly, slowly no-one really is asking about these.

ABN: Looking at two countries Kenya and Singapore, one is a winner and the other is a loser after privatizing the national carrier. Can we generalize that privatization is good or otherwise?

Kebour:You bring in the Example of Singapore; Singapore Airline is a government company. The way they setup is really different. By the way 90% of the business is under

Brussels , Belgium - 2016 June 15th – European Development Days - Impact investing for Africa - EABF Workshop - Kebour Ghenna , Executive Director , Pan African Chamber of Commerce and Industry - Moderator © European Union government or some sort of government involvement.

Singapore has been able to change and transform the management of this public association to be as performing as a private sector sort of organization.

Yes it is by choice. Now, when they arrived at a level where they are confident enough this particular sector can be released to the private sector without disrupting the integrity of the public and the sovereignty of the country. They move towards it. They move on to a lot of things actually where the private sector have difficulties in investing on. Singapore has been successful in moving in to these kinds of sectors. When they arrive at a certain level the government quits and privatize the sector. These major entities in Singapore are still owned by government. But the structures they operate under as the private sector are rewarded on the process that they generate if they don’t generate they will be let go.

But the model that we are trying to adopt which is the neo liberal model where privatization has the major role, the role of the government is diminished, where any kind of production has to made by the private sector, where social services have to be reduced in favor of private sort of services. All these have created an environment where many of the countries that we want have made the right policy questioning themselves. In France, for example, they have these people out on the streets saying that they cannot really live on the salaries they are generating. In France the ones that are growing more

and more are somewhat retrenching or reducing.It is same thing actually or even worsein the US. Today we have a debt level where we cannot really concede that it can be paid. Imagine we are at the zero% interest rate, move it to 1 or 2 %, with the level of debt you have, how much of your revenue will go in to covering the debt. It is impossible so we have reached this level. We, in changing our approach to development, are adopting what has failed in many countries even developed countries.

ABN: What are the types of privatization?

Kebour: There are many types of privatization such as constructive privatization. Here you still keep some parts of the company and subcontract the management. A good example in this regard is the Hilton Hotels. Hilton Hotels has been profitable for years actually and the government has decided to privatize. I mean a hotel you privatize and tomorrow you can build a hotel. But you cannot build another Airline tomorrow.

That is the fact. You have that type of contract, the management takeover.

Instead of privatizing the public asset, you take over the management. Then you have the outright sell. There are quite a few types of privatization arrangements.

The 49/51 arrangement is a

trick actually. We have seen it when they sold Ethiopian Tobacco; initially 49/51% then another 20%, then another 20% and today all have gone actually. For me tobacco again is not a strategic asset. When they say 49/51 it is a trick next time to say guys we are not moving ahead so we have to be innovative, we need new equipment, new software and we need to borrow one billion dollar.

So 51% Ethiopia and it will pay 51% of that debt. Even you don’t know where they spend that 51% because you are not managing it. I know you cannot pay the debt; therefore, let us make it 60% 80% and finally 100%. These are welldocumented tactics.

ABN: Are you Optimist regarding CFTA, will it realize?

Kebour:As an African, I want to be and need to be optimist. If not that I don’t want to think this thing is not working. What I want to say is….Yeah! this is challenging. We all have to put on our minds to make it work. I mean this is so in that sense I am Very much optimistic.

ABN: Thank You very much for the time you share with us

!!!

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Radisson: Setting Foot in

Bahir Dar

By Staff Writer

Radisson Hotel Group announced the signing of the Radisson Hotel Bahir Dar, located in the North East of Addis Ababa. It will be the first Radisson branded hotel and the Group’s fourth hotel in the country.

This brings Radisson Hotel Group’s African portfolio to almost 100 hotels in operation and under development.

The Radisson Hotel Bahir Dar will be located on the shores of Lake Tana, Ethiopia’s largest lake which has been nominated a UNESCO Biosphere Reserve, just 8km from the International Airport. The city is home to some of the world’s oldest monasteries and churches, and the hotel sits just 25km from Tis Abbay Falls, one of Ethiopia’s best-known tourist attractions.

for growth and evolution. According to WTTC, Ethiopia experienced the ‘highest tourism growth in the world’ in recent years, with over 45% increase.

Such growth justifies more hotel developments in the country and we are pleased to introduce our fourth hotel in the market.”

“Negotiation took almost The owner of the hotel, Tiliksew Gedamu, 2 years, and international a former high school teacher who also negotiations and the brand owns another hotel in Gambella and concept has been developed

by OZZIE International Hotel Project Consultancy.”

Managing Director and Lead Consultant of OZZIE, Kumneger Teketel disclosed.

Also on the signing ceremony, it was indicated that Radisson Bahir Dar will be Renovated fully for 10months and Operational after12 Months, and the Brand will Transform Bahirdar City to International MICE Tourism or attract International Organisers and bring the city to International MICE Map.

Bahir Dar serves as the capital of the Amhara region in Ethiopia and is a well-known, memorable city to the north of the country. Tourists are drawn to Bahir Dar from around the world, not only due to the serene Lake Tana but also due to the city’s great location to rest and relax overnight, as travelers make their way to other popular destinations such as Gondar, Simien Mountains, and Lalibela.

“We are proud to be partnering with Radisson Hotel Group to open Bahir Dar’s first hotel with a top international brand in the city. The hotel will be crafted for relaxation and rest, given its great accessibility and prime location on the shores of Lake Tana.” The owner noted.

“I am excited we are partnering with Radisson and pushing the hospitality industry to a much higher standard and level.”

“Bahir Dar is set to become a key MICE destination and the Radisson Hotel Bahir Dar will be crafted to become the ideal choice for international travelers and locals looking for event spaces.”

Elie Younes, Executive Vice President & Chief Development Officer, Radisson Hotel Group, said: “Africa remains the most exciting continent 14 Abyssinia Business Nework

Debre Markos said, “This was a relationship that developed organically and with care and we are fully confident, it will help us serve our customers with an international standard”

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The franchise is believed to capitalize on the Northern Historic Route of Ethiopia to offer guests a memorable place to sleep and eat good food, along the famous trail which includes the Blue Nile Falls, Lake Tana Lalibela, the breathtaking Simien Mountains, and Aksum. It was also stated that the coming of the brand could create a long relationship with the Radisson Hotel Group and to develop more projects and together to lift up the city of Bahir Dar and the Amhara region.

The fully renovated, converted 125-room hotel will comprise of a variety of room types, from Standard to King rooms and Presidential Suites. Guests will be spoilt for choice with delicious food, which will include a bespoke concept restaurant, allday dining as well as an Italian restaurant.

For signature cocktails and drinks, the hotel’s three bars will provide delicious temptations for a treat or two, with a bar overlooking the glistening lake and another within a trendy club located on the basement level of the hotel. Guests can also keep their fitness routine on track in the fully-equipped gym, kick-back and let the excitement of the day melt away while being pampered in the spa, take a dip in the pool or sit back at the boat jetty, getting back to nature and basking in the panoramic lake views.

The expansive 1140sqm meeting and events area will set the hotel apart from the rest. It will host six meeting rooms and a sub-divisible ballroom; the ideal space to host any business and leisure function.

Radisson Hotel Group is one of the world’s largest and most dynamic hotel groups with seven distinctive hotel brands with more than 1,100 hotels in destinations around the world. Its portfolio of hotel brands includes Radisson Collection, Radisson Blu, Radisson, Radisson RED, Park Plaza, Park Inn by Radisson and Country Inn & Suites by Radisson.

Haile Hotel to Set Foot in Adama

By Staff Writer

Haile Hotel is set to be hotel in Addis Ababa and other operational in Adama town of hotel projects in Wolayta Sodo the Oromia Regional State in and Konso. just a few months time.

The Manager further noted The hotel construction being that this ground plus five hotel undertaken on around 11,500 building embraces a total meter square or 1.2 hectares of 108 rooms ranging from of land is said to be free from premium suit to standard room, any displacement of the local six conference and event halls, people since the land for the health clubs, spa and recreation, construction was bought from food and beverage outlets as individuals. well as outdoor and children The hotel construction playgrounds. being undertaken at a cost of 403,000,000 birr at the Asked what makes the hotel gate of the town opposite different from other hotels, the to Aba Geda Conference representative replied that it Center is mainly designed for has plan to make use of latest conference, retreat, family technologies including Airand business travellers. conditions /AC/, data system, fire alarm and many more.

“Currently we have six hotels and resorts operational Designed by GERETTA at different regions in the Consulting Architects and country; Haile Resorts at Engineers P.L.C, the would-be Hawassa, Arbaminch and Haile Hotel-Adama is expected Gondar while Haile Hotels to go operational in January in Ziway and Shashemene 2020 and create job opportunity as well as Yaya Athletics for 300 citizens when it goes Village,” Wutsifte Girma, fully operational.

Haile Hotels and Resorts Group Marketing Manager The presence of the hotel in told ABN. Adama town is believed to Haile Hotel-Adama will be have significant advantage the 7th establishments of both for the local government Haile Hotels and Resorts and the community through P.L.C, while it’s undertaking unemployment reduction and a construction of five-star attracting investors to the town.

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Berhan Bank: Celebrating a-Decade-Journey

By AklileTsige In Ethiopia all banks are owned by the local people as the country has not yet liberalized the market for foreign banks. Even though for many years there have been many interests from foreign countries to enter the banking sector of Ethiopia, the government didn’t open the sector so far.

The banks have faced several challenges, including foreign exchange-related issues and local political unrest.

Despite the problems, the domestic banking sector posted its highest growth rate in six years, along with accelerated branch expansions.

One of the private banks in Ethiopia, Berhan Bank has shown a magnificent growth in all banking service outputs in its decade journey; Aklile Tsige, ABN Editor-in-Chief speaks to the Bank’s President, Abraham Alaro,regarding ten-year-journey of the Bank.

Emergence of Modern Banks in Ethiopia

H

istory has it that the first bank in Ethiopia, the “Bank of Abyssinia”, was established in 1905 based on the agreement signed between the Ethiopian Government and the National Bank of Egypt, which was owned by the British. Its capital was 1 million shillings. According to the agreement, the bank was allowed to engage in commercial banking (selling shares, accepting deposits and effecting payments in cheques) and to issue currency notes. The agreement prevented the establishment of any other bank in Ethiopia, thus giving monopoly right to the Bank of Abyssinia.

was signed, opened branches in Harar, Dire Dawa, Gore and DembiDolo as well as an agency office in Gambela and a transit office in Djibouti. Apart from serving foreigners residing in Ethiopia, and holding government accounts, it could not attract deposits from Ethiopian nationals who were not familiar with banking services.

The Ethiopian Government, under Emperor Haile Sellassie, closed the Bank of Abysinia, paid compensation to its shareholders and established the Bank of Ethiopia which was fully owned

by Ethiopians, with a capital of The Bank, which started operation a pound Sterling 750,000. The Bank year after its establishment agreement started operation in 1932. The 16 Abyssinia Business Nework

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majority shareholders of the Bank of Ethiopia were the Emperor and the political elites of the time. The Bank was authorized to combine the functions of central banking (issuing currency notes and coins) and commercial banking. The Bank of Ethiopia opened branches in Dire Dawa, Gore, Dessie, Debre Tabor and Harrar.

With the Italian occupation (19361941), the operation of the Bank of Ethiopia came to a halt, but a number of Italian financial institutions were working in the country. These were Banco Di Roma, Banco Di Napoli and BancaNazionaledelLavora.

It should also be mentioned that Barclays Bank had opened a branch and operated in Ethiopia during 1942-43.

In 1963, the State Bank of Ethiopia split into the National Bank of Ethiopia and the Commercial Bank of Ethiopia S.C. with the purpose of segregating the functions of central banking from those of commercial banking. The new banks started operation in 1964.

Berhan Bank President, Abraham Alarorecalled that the first privately owned company in banking business was the Addis Ababa Bank S.C., established in 1964. 51% of the shares of the bank were owned

by Ethiopian shareholders, 9% by foreigners living in Ethiopia and 40% by the National and Grindlays Bank of London. The Bank carried our typical commercial banking business. Banco Di Roma and Banco Di Napoli also continued to operate.

Thus, until the end of 1974, there were state owned, foreign owned and Ethiopian owned banks in Ethiopia. The banks were established for different purposes: central banking, commercial banking, development banking and investment banking. Such diversification of functions, lack of widespread banking habit among the wider population, the uneven and thinly spread branch network, and the asymmetrical capacity of banks, made the issue of completion among banks almost irrelevant.

Photo by Daniel Tiruneh

Following the 1974 Revolution, on January 1, 1975 all private banks and 13 insurance companies were nationalized and along with state owned banks, placed under the coordination, supervision and control of the National Bank of Ethiopia. The three private banks, Banco Di Roman, Banco Di Napoli and the Addis Ababa Bank S.C. were merged to form “Addis Bank.” Eventually in 1980 this bank was itself merged with the Commercial Bank of Ethiopia S.C. to form the “Commercial Bank of Ethiopia,” thereby creating a monopoly of commercial banking services in Ethiopia.

After the downfall of the Dergue regime by the EPRDF, the Transitional Government of Ethiopia was established and the New Economic Policy for the period of transition was issued. This new economic policy replaced centrally planned economic system with a market-oriented system and ushered in the private sector.

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Berhan Bank: Birth and Development Registered and licensed by the National Bank of Ethiopia on 27th June, 2009 with an authorized capital of Birr 300 Million and subscribed capital of Birr 154.7 Million, Berhan Bank was inaugurated and launched its operation on October 3, 2009, opening its first branch in Bole, Addis Ababa.

According to the Berhan Bank President,Abraham Alaro, the 10year journey of the Bank could be viewed from three different eras: the first one, 2009-2013 was an establishment period that saw aggressive marketing and promotion activity,andfoundation for the Bank was laid. The second era, 2014-2016 was a take-off timeby which refined strategy for market penetration was attempted. The third era, 2017 to the present is a period that the bank has shown a splendid achievements and relative maturity in the industry.

The Bank has managed toraise its income for years. The Bank’s deposit has shown a remarkable growth which stands 14.964.3 million Birr in 2018/19 from 238 million Birr ten years ago.

Abraham indicated that in the past ten years the Bank has stretched its wings to various regional states across the country, and enabled to raise the number to 200 branches from five branches ten years ago, showing an exponential increase annually.

The Bank’s profit has been showing significant increase since its establishment a decade ago. Indeed, a profit surge is witnessed in 2018/19 fiscal year; gross profit of the Bank stands at 580.1 million which was 410.9 million Birr a year ago.

On the other hand the Bank’s assets reached over 19.2 billion Birr, which is an increase of 33.5 percent compared with the preceding year’s 14.1 billion Birr.

For the year Berhan’s capital strength continued significantly, in 2018/19 the total paid-up capital reached 2 billion birr from 1.7 in 2017/18 fiscal year.

“We have achieved the goals of our strategic plan three years before the time set despite the various challenges our Bank hasfacedregarding foreign currency mobilization and some directives of the National Bank,” The President noted that Berhan Bank is the first Ethiopian private Bank to attract over 15,000 shareholders while the number of depositors reached 657,027 in the 2018/19 fiscal year.

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“The bank strongly believes that it has a moral obligation to directly or indirectly contribute its share to efforts to alleviate societal challenges.”

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Photo Berhan Bank file Abyssinia Business Nework

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እንደስማችን ብርሃን ነው ሥራችን!

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Over 4000 employees of the Bank have currently been working in a very conducive and encouraging working environment that has enabled to bring about increased customer satisfaction and impacts on the development of the national economy as well.

Abraham said the Bank had spent two years before its establishment ten years ago, and had gone through lots of ups and downs to secure the required start-up capital at the moment.He further added that the dedicated and committed founders of the Bank had shown their selfless personality to realize the establishment of the Bank.

Moreover, Abraham statedthat ensuring whether relevant banking rules and regulations put in place, aggressive marketing and promotion under taken by the founders of the Bank as well as equipping and staffing the Bank with appropriate and relevant logistics and human resources were some of the major activities carried out to establish the bank.

Berhan Bank has initially taken into consideration its values so that it could make impacts on the country’s banking industry and its customers.

It has been known for its integrity and commitment, and remained role model for other businesses around.

Berhan Bank is also known for its being the first private Bank to launch core banking solutionfully automating and networking its branches in the country. This made the Bank exemplary for other banks, and then the National Bank of Ethiopia has declared that the launching of core banking system is mandatory.

The Bank displayed an amazing boom in its financial transaction 22 Abyssinia Business Nework

“

Re-branding obliges us to come up with a new, innovative and unique customer service. So we are now the bank officially launch this rebranding endeavor.

”

and number of customers in 2014/15, andithad to embark on expansion of a high-tech database at a cost of 77 million Birr that could accommodate the ever increasing service demand.

This obviously upgraded the various banking products such as internet banking mobile banking, school pay, and mobile top-up.

“We have achieved the goals of our strategic plan three years before the time set despite the various challenges our Bank has sufferedregarding foreign currency mobilization and some directives of the National Bank,” Abraham noted.

Berhan Bank has mainly worked on maintaining an open and transparent working environment; “A South African company has conducted a survey on the bank and found out that there exists

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a good working atmosphere for both its customers and employees” said Abraham, adding that for this remarkable achievement the Bank was awarded a certificate of recognition by this South African company.

As a socially responsible company Berhan Bank has been taking part in several community development programs. In favor of this, Abraham said, ‘‘The Bank strongly believes that it has moral obligation to directly or indirectly contribute its share to efforts to alleviate societal challenges.”

Thus, the Bank has donated one to five million Birr financial support to various governmental and nongovernmental institutions, including the Great Ethiopian Renaissance Dam (GERD), Sheger Beautification Project, and Ambo Youth Center Project. Furthermore, it has played a pivotal role in the rehabilitation of displaced people in Amhara, Oromia, Somalia and Tigray Regional States as well as supporting the purchase of educational materials for students in Addis Ababa City Administration.

It has now become so common to name the area located at ‘‘Senga Tera” in the Capital, Addis Ababa, “Sheger Wall Street” where several private banks are erecting their magnificent headquarters buildings.Berhan Bank has made relentless effort to secure land for the construction of its headquarters in this financial site.

“Re-branding renders us with an opportunity to come up with a new, innovative and unique customer services. So we are now the Bank officially launch this rebranding endeavor.”

It was indicated that the Bank has been waiting for a response from the Addis Ababa City Administration for itsland request for more than four years, and it alsomade attemptspreviously to buy plot of land from individuals for the same cause.

With regards to its international remittance business, the Bank haspartnered with Western Union, Dahabshiil, Taran Express and other international remittance service providing companies. Profit figurescontinued to soar, registering a remarkable growth in gross profit year in year out.

In connection with its 10th year anniversary, Berhan Bank has embarked on rebranding its company, changing its logo, motto and image. “This renders us with an opportunity to come up with a new, innovative and unique customer services. So we are now officially launching this rebranding endeavor.” Abraham noted.

“We have now closed the first chapter which brings us to this successful path, and we also have to reposition ourselves in a new and better image that would help us serve our customers more efficiently and effectively.” Abraham said, Some of the Directives of the National Bank of Ethiopia (NBE) are said to be bottlenecks forthe operation of private banks.

Nevertheless, very recently the NBE has lifted a long-running mandatory bond purchase Directives in which private banks were obliged to purchase a bond accounting 27% of every loan they extend to borrowers.

Photo by Anteneh Aklilu

This, according to Abraham, will help banksto reach out to the credit requests of their customers in a better way.

With regard to the ongoing discussion pertaining to opening the financial industry to foreign banks, ThePresident said, “preparation to open the industry for foreign banks should be treated meticulously, and our financial institutions need to be prepared andgiven opportunity to enter into foreign country markets as they would do here.”, adding that the Ethiopian Government needs to look into ways of facilitating bilateral issues that help these institutions be players in foreign markets.

Speaking of the Berhan Bank’s future, Abraham indicated that the Bank will mainly focus on expanding technology-based services, enhancing quality of customer service and competitiveness, building employees’ capacity and expandingitsasset base.

While future banking industry in Ethiopia seem to be promising as challenging government financial policy and regulations are being amended, Berhan Bank, in its ten years journey has successfully achieved what it had intended to achieve; the founders should be proud of what they have done in the past ten years. Hence, the Bank with its re-branding move and technological advancement will undoubtedly keep going, rising and booming.

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CARGO ROUTE MAP

Br ussels

Lièg

M Zaragoza New York

Miami Mexico City Dakar

Niamey Bamako Ouagadougou Abidjan

Bogotá

Kan

Lomé Lagos En Accra Cotonou

Librev B

Quito

Lu

Sao Paulo

Santiago

24

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Ethiopian is the largest cargo network operator in Africa, in terms of FTK (freight ton km), Revenue, Network & fleet size, with 30 freighter destinations; on 2018/19, and one of the major global cargo players, having scored the largest performance with annual capacity of more than 430tons cargo traffic, serving 57+ global freighter destinations with 12 dedicated freighters including 10 Boeing B777-200LRF and 2 - Boeing B737-800CF from our main hub in Addis Ababa and Liege. Ethiopian operates in major trade lanes between Africa and Europe, Middle-east and Asia providing a convenient and reliable cargo service to

ge

Milan Istanbul

Seoul Shanghai

Cairo

Kuwait Riyadh BahrainSharjah Dubai J eddah

New Delhi

Chongqing

Mumbai Bangalore Hargeisa

nugu u Douala Yaoundé ville Brazzaville Kinshasa

uanda

Hanoi

Asmara

Khartoum no N’ Djamena

Guangzhou

Ahmedabad

Chennai

Hong Kong

Bangkok

Addis Ababa J uba Mogadishu Entebbe Nairobi Kigali Bujumbura

Lusaka

Lilongwe

Harare Johannesburg

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“A Nisir Microfinance: Treasure for All”

Gaining Momentum

”

By Aklile Tsige

The World Bank estimates that more than 500 million people have directly or indirectly benefited from microfinance-related operations. The International Finance Corporation (IFC), part of the larger World Bank Group, estimates that, as of 2014, more than 130 million people have directly benefited from microfinance-related operations.

However, these operations are only available to approximately 20% of the three billion people who qualify as among the world’s poor.

According to the National Bank of Ethiopia, there are currently 44 MFIs operating in Ethiopia, and they are believed to have impacted on people’s lives. Aklile Tsige speaks toDawitWakgari, Chief Executive Officer, and Henok Abera, Business Development and Marketing Manager of one of these MFIs in the country,Nisir MFI.

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In Ethiopia, micro finance institutions (MFIs), which were mostly founded with the aim of fighting poverty, play a big role in addressing the needs of people who are considered ‘high-risk’ by commercial banks.

In a country where over 77pct of the population is unbanked, MFIs provide loans to the large portion of the population with very few assets.

Microfinance, also called microcredit, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. This is because banks are mainly targeting the rich.

While institutions participating in the area of microfinance most often provide lending microloans can range from as small as 1,000-500,000 birr ; they also offer additional banking services such as checking and savings accounts as well as micro-insurance products.

Established in 2014, Nisir Microfinance Institution S.Cinitially kicked-off operation with a startup capital of seven million birr,

and seven staff members and the visionary founders of the institution have been drawn from notable institutions such as former experts of the National Bank of Ethiopia and the World Bank. Nisircurrently provides efficient loans of multiple options with integrated and coordinated function of its various departments and sections: Operations, Business Development, Finance, Information Technology, Human Resource, Legal and Internal Control and Risk.

Nisir Micro Finance Institution is a growing institution which is currently operating at the head quarters located at Dembel City Center, and 5 branches at Olympia, Megenagna, Beklobet,Piassa, and Merkato. Nisir is currently serving more than 3,700 clients with an exceptionally praised customer service.

Henok Abera, Nisir MFI Business Development and Marketing Department Manager noted that the institution which is

closelyregulated and supervised by the National Bank of Ethiopia mainly focuses on mobilizing financial resources through shareholders’ investment and savings.

The manager further indicated that the institution requests not only vehicles as collateral but also share capital certificates and deposit certificates, among others.

Waving its business motto “A Treasure for All”, Nisiris now a-300-million-birr company thathas currently managed to secure 250 million birr from its customers’ savings while the 50 million birr is contributed by its shareholders.

With the view to building trustamong the public and expanding its outreach base, the institution is doing its level best by maintaining good partnership with international development organizations, reputable banks and so is with big companies.

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Photo Nisir file According to Nisir MFI CEO,Dawit Wakgari, like conventional lenders, micro financiers must charge interest on loans, and they institute specific repayment plans with payments due at regular intervals.

Some lenders require loan recipients to set aside a part of their income in a savings account, which can be used as insurance if the customer defaults. If the borrower repays the loan successfully, then they have just accrued extra savings.

Although there are two types of savings: fixed term and cash-in out, the institution mainly embarked on operating a competitive fixed term loan scheme by which depositors obtain up to 12% plus annual interest. This’s a stress-free, shortterm investment alternative as a customer who deposits 1,000,000 birr receives a monthly interest of 10,000 birr, and the like. This’s how 28 Abyssinia Business Nework

Nisir managed to mobilize huge amount of savings from customers.

Continuing its journey with innovative approach, Nisir Microfinance supports a large number of activities that range from providing the basics like bank checking and savings accounts to startupcapital for small business entrepreneurs and business development plans.

“Our service is so efficient that borrowers can secure loans within a few days as long as they fulfill the requirements set by the Institution.” Henok went on saying, “but our customers are required only to deposit a 5% presaving, which is believed to be a foundation for developing saving habit.”

Nisir has also come up with a new business model, targeting

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the “missing middle” segment of the economy wholack investable capital targeted at funding SMEs. When the institution started operation five years ago the regular interest set by the National Bank used to be 5% while it was paying 8% interest that undoubtedly captivated depositors.

Business Development and Marketing Manager indicated that many retired persons have been confused as to what to do with their money at hand; so the institution manages to provide a monthly interest for those depositors who could lead a decent life with the benefit they get.

Nisir MFI is planning to erect its own headquarters building at the heart of the city locally known as ‘Senga-Tera”, or lately considered to be “ShegerWall-street”. In

order to look into future construction, the institution has bought three condominium basement apartments at this condo site and rented it for the same cause.

Since the institution mainly wants to mobilize financial resources it embarks on launching an aggressive promotion campaign through media and communication outlets such as TV, radio and other commercials with the view to captivating and persuading depositors.

“As we provide need-based financial services, we reacheda 250-million-birr deposit last year, but this Ethiopian fiscal year we plan to make Nisir a 1-billion-birr company serving segment of the society not addressed and reached by other financial institutions.

That’s why we need to engage in an intensive promotion campaign.”

DawitWakgari, Nisir MFI CEO noted.

This time around the use of information communication technology in financial institution appears to be mandatory to sustain in this competitive financial business.

In this regard, Nisir MFI has already signed an agreement with an internationaltech company to implement core banking system in the institution.

“This technology undoubtedly helps us establish and maintain trust among the depositors, and provide efficient and effective saving and credit services.”

Said Dawit.

It is common to see most of MFIs struggling to sustain their business without donor or government support. On the contrary, Nisir Microfinance has managed to become self-

sustaining and is even more discharging its social responsibility in support of various socioeconomic challenges. To mention some: the institution has introduced an innovative and very affordable loan product for university students to help them buy their own laptop computers from a trusted vendor at discounted price.Moreover, it has recently extended financial support to joy Autism Center established by Niya Foundation.

The benefits of microfinance extend beyond the direct effects of giving people a source for capital. Entrepreneurs who create successful businesses, in turn, create jobs, trade, and overall economic improvement within a community.

Thus, Nisir Microfinance Institution keeps going, maintaining its core values, unique saving and credit services while serving the nation with credible and reliable strategies.

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Sustainable Development Goals, structural transformation and financing for development

By Staff Writer Dependence on external resources to finance fixed investment and, more generally, sustainable development is a crucial feature of the economies of the least developed countries (LDCs).

Consequently, such dependence has a determining impact on the ability of these countries to reach their development goals, especially the Sustainable Development Goals and the objectives of the Programme of Action for the Least Developed Countries for the Decade 2011–2020 (Istanbul Programme of Action).

development aid, in the context of the broader topic of international cooperation for development, structural transformation and sustainable development. An “Aid Effectiveness Agenda 2.0”, as proposed in this report, could contribute decisively to structural transformation through better management and delivery of aid. Structural transformation is, in turn, a condition for the realization of human rights including the right to development and the realization This report re-examines that dependence of the Sustainable Development and contributes to development Goals and objectives of the policy debates by showing the Istanbul Programme of Action. linkages between development goals, structural transformation, sustainable LDCs have progressed too slowly development and human rights. towards achievement of their objectives under the Istanbul Human rights are scarcely mentioned Programme of Action and of the in those debates, yet the connection Sustainable Development Goals, is evidenced by the fact that both the largely due to scant progress in objectives of the Istanbul Programme of structural transformation.

Action and the Sustainable Development Goals aim at the realization of human Here, structural economic rights in general and, specifically, of transformation is understood to the right to development. While no mean the transfer of productive single human right has ascendency resources (particularly labour, over the various other human rights, the capital and land) from activities realization of the right to development and sectors of low productivity creates an enabling environment for the to those of higher productivity. realization of all human rights.

One reason for this scant progress is the failure of the International cooperation, which is international community to central to this report, is a key contributor create an international economic to the realization of human rights. environment conducive to the Specifically, the report concentrates on structural transformation of 30 Abyssinia Business Nework

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U N C T A D

LDCs. Structural transformation plays a crucial role as an enabler of sustainable development. It is also a given that the financial resources available to LDCs are limited. In this report, therefore, the point is made that these countries and their development partners should sequence their policy and spending focus with an eye on the Sustainable Development Goals most relevant to structural transformation Goals 7, 8, 9, 12 and 17 initially receiving greater attention and resources. Rapid progress towards achieving these Goals is an enabler of the realization of the other Goals.

In terms of balance of payments, the reallocation of resources towards higher-productivity activities leads to expansion and diversification of exports and lower dependence on imported intermediates and capital goods (as domestic firms narrow their competitiveness gap vis-a-vis foreign suppliers). This gradually contributes to reducing current account deficits, by means of a dynamic relationship between exports, profit and investment.

The positive growth performance of LDCs since the global financial crisis of 2008/09 has not been sufficient for these countries to accelerate structural transformation or reduce dependence on external resources (i.e. foreign savings) to finance

fixed investment and development.

Despite a difficult international environment, LDC exports of goods and especially services have seen a significant expansion since the outbreak of the crisis. However, two negative developments overshadow this positive development for LDCs: (a) the very limited diversification or upgrading of their export baskets; and (b) the even more rapid expansion of imports (leading to widening current account deficits).

Domestic resource mobilization on a scale commensurate with the enormous investment needs of LDCs is not an option for them, due to their low income and high levels of poverty.

By the same token, these countries have little ability to attract marketbased forms of sustainable long-term financing.

LDCs’ sluggish progress on structural transformation is reflected in persistent current account deficits.

These deficits need to be financed by foreign capital inflows, hence LDCs’ external financing needs and their dependence on foreign savings. From a balance of payments point of view, the main sources of external finance have traditionally been foreign direct investment (FDI), traditional official development assistance (ODA), resources arising from South–South cooperation, remittances, external debt and portfolio investments. More recently, blended finance and public–private partnerships have emerged as alternative sources.

These different sources each have, however, a distinct development footprint, degree of alignment with a country’s development strategies and consequences for external indebtedness.

The

major

source

of

external

development finance for LDCs as a group is ODA, and the vast majority of these countries are dependent on ODA for their development finance. By contrast, for other developing countries, FDI is the most important source.

The state of LDC aid dependence depicted so far is worrisome per se. Moreover, such dependence has become even more challenging to LDCs as the aid landscape has changed considerably in recent years. The aid architecture has become more complex and less transparent since the early 2000s, which further challenges LDC policymakers’ already constrained capacities to manage the financing of their sustainable development.

The aid architecture has been transformed as a result of: (a) changes in the aid policies of traditional donors; (b) the declining role of nongovernmental organizations and the emergence of new forms of private sector engagement; (c) the strengthening and broadening of South–South cooperation; (d) the entry of philanthropists; and (e) the development of new modalities and instruments of raising and delivering aid, such as blended finance and public–private partnerships.

The Least Developed Countries Report 2019: The Present and Future of External Development Finance Old Dependence, New Challenges aims at answering the question of whether, and to what extent, available external resources are contributing to the structural economic transformation of LDCs. The report is intended as an input and contribution to the policy

debate and deliberations of the forthcoming Fifth United Nations Conference on the Least Developed Countries, in 2021, leading to the adoption of a new plan of action for LDCs to guide policy actions and international cooperation until 2030.

How dependence on external development finance is affecting fiscal policies Critical to achieving the Sustainable Development Goals in LDCs are the domestic public resources needed for public investments and services to sustain economic transformation and eradicate poverty and hunger.

Strengthening domestic public resource mobilization is critical to closing development financing gaps and lowering the pressure on public debt. However, persistent structural deficits and balance-of-payments problems among LDCs suggests a greater need for ODA to supplement domestic public resources. The pace of implementation of the Sustainable Development Goals and the quality of results will also depend on synergy between external and domestic public resources.

Tax capacity, as measured by a tax revenue-to-GDP ratio, has increased tremendously among LDCs, from an average of 11 per cent in 2000 to 19 per cent in 2017. The median tax revenue-to-GDP ratio for LDCs reached the 15 per cent mark in 2011, widely regarded as the minimum threshold necessary to support sustainable growth and development. In many LDCs, however, tax revenue still amounts to less than 10 per cent of GDP. Most LDCs operate below tax capacity, though Benin, Burkina Faso, Kiribati, Lesotho, Malawi,

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Nepal and Togo have consistently operated close to full tax capacity.

Moreover, countries such as the Gambia, Kiribati, Liberia, Nepal, Rwanda and Timor-Leste have achieved improvements in tax administration including compliance that has helped them to better link tax revenue to economic activities.

Over the years, the composition of taxes among LDCs has shifted significantly, from deriving mainly from duties on international trade, to coming from broadly defined consumer and income taxes.

Consumer and income taxes amounted, on average, to 32.4 per cent and 23.5 per cent of tax revenues in 2017, respectively.

The main factors constraining the tax potential of LDCs include tax evasion, the relative size of the informal economy compared to the formal economy, weak tax administration systems, corruption, illicit financial flows and underperforming public policy and institutions. Moreover, low levels of GDP and of economic diversification limit the extent to which LDCs can further increase net revenue from taxes on income, profits, and goods and services.

Still, efforts to strengthen domestic resource mobilization need to be undertaken.

Fiscal reforms in LDCs should carefully weigh the welfare implications of new taxes or review existing tax components. The focus should be on comprehensively reviewing the tax base, improving tax administration systems, closing loopholes, simplifying the tax system, removing ill-designed tax incentives and tax holidays that fail to balance foreign interests with local enterprise development requirements, and providing adequate tax information to the public.

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Building fiscal spaces requires a series of budget cycles over which LDCs should cumulatively align fiscal reforms with broader structural transformation objectives. Curbing illicit financial flows has the potential to boost revenue, as such flows averaged an estimated 5 per cent of LDC GDP in 2015. Combating them requires international tax cooperation and enhanced national capacity of regulatory and tax administration bodies to track, stop and prevent illicit activities that drain resources and reduce the tax capacity of LDCs. Aligning public expenditure with a structural transformation agenda is as strategic as mobilizing domestic and external resources to finance the Sustainable Development Goals. The link between external finance and various categories of public sector expenditure is critical, particularly how external finance impacts the quality of public financial management institutions and their ability to generate domestic resources. The relationship between traditional ODA and domestic fiscal effort is complex and context specific.

Traditional ODA can support or undermine domestic fiscal effort, depending on how aid is delivered and targeted, and how and to what extent recipient countries manage that aid. Creating synergy between ODA and domestic resource mobilization thus depends on sectoral allocation of ODA and the impact of aid on tax effort and public expenditure.

Building the productive capacities of LDCs requires scaling up capital accumulation, through both public and private investment.

Despite concerns about volatility of allocations, ODA would in fact

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have a positive impact on economic growth when used directly in productive activities, e.g. aid earmarked for improving public services and the physical and social infrastructure of a recipient country: transport, communication, energy, water, banking, industry, health, education and population. In most LDCs, tax revenue and ODA fall short of desired public expenditures.

The divergence between ODA and public capital expenditure has risen sharply from $3.5 billion in 2006, to $92.6 billion in 2017.

Both capital expenditure and current expenditure in LDCs have seen a rapid increase. However, as evidenced by the short trend between 2014 and 2017, capital expenditures decline faster during a recession than current expenditures and recover sluggishly during economic recovery. There is thus a limit to growth based on the expansion of government spending focused on physical and social infrastructure.

This is particularly the case if there are no measures to complement domestic resources, including strategies to better align ODA with the priorities of LDCs. Growth is also limited by the absence of domestic policies to crowd in the private sector, which offsets the impact of an expanded Government.

A worrying trend is the growing gap between tax revenue and public expenditure, whereas ODA has remained relatively unchanged over the years. Government budget deficits have steadily widened from an average of 1.8 per cent of GDP in 2013, to 3.6 per cent in 2018.

Tax revenue to government expenditure ratios remained relatively high among LDCs between 2002 and 2017, while

ODA as a share of GDP has gradually declined from about 16 per cent to 11 per cent over the same period. This implies that most government priorities were financed by domestic resources.

However, donor aid and tax revenue are each equivalent to at least two thirds of government expenditure. This implies the existence of parallel donor structures that are bypassing national systems. ODA was less than 30 per cent of government expenditure only in a few countries between 2009 and 2017, including Angola, Bangladesh, Bhutan, Lesotho, Myanmar, the Sudan and Yemen. LDCs that received aid equivalent to more than 50 per cent of government expenditure but having similarly high tax-revenue to government-expenditure ratios faced significant aid diversion problems.

Fragmented modalities of traditional ODA create and sustain “independent bureaucracies” in both source and beneficiary countries. Parallel donor structures do not have a clear mapping to fiscal accounts on both the revenue and the expenditure side. Developing ODA-recipient countries whose aid is broken up into projects exhibit worse fiscal outcomes than those with streamlined ODA. Overcoming structural bottlenecks and better alignment of donor and national priorities, through a substantial shift away from projects to more programmatic forms of aid that use national systems and reduce donor overlaps, could improve domestic resource mobilization.

Aid coordination and aid effectiveness have re-emerged as topical issues in development financing, as the number of players has increased tremendously and due to the scant level of implementation of the aid effectiveness agenda. The purpose of donor coordination is threefold: (a) ensuring integration of external development assistance with the priorities of

recipient countries; (b) asserting recipient countries’ responsibility for national development agendas; and (c) ensuring that any external support adheres to the strategic objectives of national development agendas. LDCs need strong aid coordination strategies, institutional and human capacities and proactive foreign policies that cement the role of national systems over national development. In this report, therefore, it is recommended that donors streamline the aid delivery process to strengthen national systems and thus ensure effectiveness and alignment of donor support with national priorities.

Where aid coordination is institutionalized, a clear mapping exists between national development strategies, external support received through policy on international cooperation and national budget aggregates. A country’s aid coordination mechanism is deemed successful when it gathers donors support to one sectoral programme, rather than to separately conceived donor projects within a sector. LDCs such as Rwanda and the Lao People’s Democratic Republic have achieved strong progress in aid management and donor coordination.

A focus on narrow sectoral themes is, instead, common among bilateral donors. With less than 10 per cent of total aid receipts of LDCs making use of the budget support aid modality, the aid process remains a donorcentric affair despite the target of the 2005 Paris Declaration on Aid Effectiveness of increasing this type of aid. More than two thirds of total ODA from DAC member countries are provided bilaterally and mainly through project-type interventions.

Aid disbursements are weakly associated with national development

priorities in LDCs, mainly because aid is delivered in a way that falls outside the policy frameworks of recipients. However, a positive correlation between revenue and aid, and between aid and domestic debt, shows the positive complementary impact of aid when it is fully supportive of national priorities, as has been the case in Rwanda in recent years.

A country-owned institutional approach for aid coordination places high value on country ownership. As intended by the Paris Declaration, alignment in the context of external support refers to the use by donors of partner countries’ national development strategies, institutions and procedures and a commitment to contribute to strengthening recipients’ capacities. As budget support to LDCs remains fragmented, and less inclined towards developing productive capacities, there is a need to improve coordination of programmatic interventions to avoid a selective focus, misalignment and wasteful allocation of donor support to non-performing sectors.

A critical component of inefficiency in aid allocation arises from the static way in which aid is structured over time, as opposed to changing national priorities.

Several basics of development policy remain relevant for LDCs, including the need for better policies and institutions, diversification and structural transformation, development-oriented public financial management, alignment of external support to national priorities and incrementally raising the profile of domestic resource mobilization to reduce aid dependence. ODA should, however, continue playing a catalytic role in financing development in LDCs.

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Chinese e-commerce giant eyes Ethiopia

By Shiferaw Tadesse China’s internet giant- Alibaba Group, signed a memorandum of understanding (MoU) with Ethiopian officials to help Ethiopia launch its first eWTP (electronic world trade platform) Hub, the second in Africa after Rwanda.

The digital age is transforming everything, most important economic activities and the way businesses are carried out: the nature of markets and products, how to produce, how to deliver and pay, and the scale of capital to operate globally among others.

Investing in the digital economy helps boost productivity, expose companies to new ideas, technologies, new management and business models, and creating new channels of market access, and all of these at relatively low costs.

The challenges identified by the WTO and OECD, facing small and medium enterprises (SMEs), including, the access to information

about export opportunities, access to trade finance and logistics costs are among the key reasons for the Chinese e-commerce giant, Alibaba Group, to come up with an initiative dubbed, electronic World Trade Platform (eWTP).

Proposed by an English language teacher-converted entrepreneur, Jack Ma, founder of Alibaba, in 2016, eWTP aims to set up an open platform for private enterprises and coordination among international organizations, governments, and social groups which focus on the development of SMEs as well as trade.

Included in the communiqué of the G20 Summit in Hangzhou, the private sector-led and multistakeholder initiative came up for public-private cooperation to incubate eTrade rules and foster a more effective and efficient policy and business environment

for cross border electronic trade (including both B2B and B2C) development, according to the Alibaba Group, which emphasizes on working together with entrepreneurs and SMEs from African nations to seize the opportunities provided by the digital era.

In its latest move with the eWTP initiative, the Alibaba Group on Monday, November 25, 2019, signed a memorandum of understanding (MoU) with the government of Ethiopia for the establishment of eWTP, which Prime Minister of Ethiopia, Dr. Abiy Ahmed has hailed, as it plays crucial role in enabling entrepreneurs to access business information of varied types and also in introducing best practices to the country. “The eWTP creates a fair playing ground for small and medium enterprises, enabling them to access information about export, about opportunities, access to trade and finance and logistics,” the premier has said, while witnessing the signing of the MoU at the ICT Park in Ethiopia’s capital Addis Ababa on Nov. 25, 2019.

With the agreement on the launch of eWTP Ethiopia, three documents have been signed by the two sides, including, for the eWTP framework, digital capacity building, and building a comprehensive digital hub.

The eWTP aims to facilitate the development of eTrade and the digital economy through the development of eTrade infrastructure and adoption of best practices such as cross-border eTrade experiment zones to solve outstanding issues facing SMEs, especially in developing countries.

The initiative is also said to enable Ethiopia to provide smart logistics and services, conduct cross-border trades, with SMEs by helping them

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marketing goods and services to the Chinese and other nations of the world, as well as serve as a center of excellence in training young entrepreneurs, among others.

Reiterating that Alibaba has keen interest to working together with entrepreneurs and SMEs from African nations, exploiting opportunities of the digital era, the Alibaba Group Director and Ant Financial Services Group Chairman and CEO, Eric Jing, said “It is an honor to partner with the government of Ethiopia to establish the Electronic World Trade Platform (eWTP) Ethiopia Hub. We will continue to support the creation of a more inclusive digitally-enabled global economy, where small businesses can participate in global trade.”

Rwanda was the first African country to launch the platform, whereby Rwanda and Alibaba launched the eWTP in October 2018, with the signing of MOUs in the areas of e-commerce, tourism, e-payment, and capacity building, under the framework of eWTP. As part of the eWTP agreement signed between the Rwandan government and Alibaba, 22 Rwandan students were then expected to attend an undergraduate program at the Alibaba Business School in September 2019.

Speaking

at

the

Africa

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Industrialization Week held from 18 to 22 November 2019 on the premises of the African Union (AU) headquarters in Addis Ababa, the Executive Director of International Trade Center, Arancha Gonzalez, has emphasized on the need for African countries to invest, among other four areas, in the digital economy, which is the economy of the 21st century, to enhance trade and create more jobs for millions of African young people.

“What young entrepreneurs require is a radical and rapid shift in Africa’s business ecosystem so that we open the efficiencies and possibilities in all the sectors that can penetrate even in the most remote rural population and communities,” Gonzalez has said, indicating that the most visible manifestation of the digital economy is in e-commerce.

Signing the MoU for the eWTP Ethiopia, the country’s Minister of Innovation and Technology,

Getahun Mekuria, noted that the engagement would greatly contribute to trade facilitation and open markets to SMEs not only in Ethiopia but in the wider region, adding that it is an important step in the development of a digital economy in Ethiopia.

“Taking eWTP as one of the e-commerce platforms, Ethiopia aims to facilitate the development of e-trade and the digital economy through the development of e-trade infrastructure and adoption of best practices,” said Prime Minister Abiy Ahmed.

Speaking on the occasion, Jack Ma, founder of Alibaba Group emphasized the need to cultivate entrepreneurship and to cultivate the sprint of innovation, driving for speed results and efficiency. “I believe in the digital economy, and the small businesses in Ethiopia, young people in Ethiopia, entrepreneurs in Ethiopia will go to the world, will trade with the world, business with the world and partner with the world because of this digital economy,” he added.

“The success of Ethiopia will not only inspire Ethiopian young people, but it will also inspire the whole Africa to grasp the opportunities of the digital economy,” he concluded.

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How Black Friday is giving Africa’s economy a lift Credit: Josephine Wawira It is quite phenomenal how in recent years, both ecommerce players and retailers have used Black Friday to sweep thrifty shoppers off their feet.

So much that the shopping event is no longer restricted to a single-day shopping spree but has rather taken over the entire month to become Black November. If you drove around the streets of Nairobi, Lagos and Johannesburg for instance, the number of billboards showing discounted Black Friday sales as well as digital advertisements are proof of the retailers’ craze to maximize consumer spend during the BF period.

Undoubtedly, the ripple effect that Black Friday sales have on African economies cannot be overlooked.

According to Black Friday Global, a marketing website, Black Friday sales are 1,331% and 1,952% higher than averageday sales in the continent’s two largest economies, Nigeria and South Africa respectively. In this view, how is Black Friday providing an economic lift to the continent?

share of the BF pie. With every vendor aiming to top the list of more products and/or services sold, competition has increased as consumers seek to be impressed and convinced to purchase from one and not the other sellers. At the end of the month of November, businesses have recorded upturning, if not groundbreaking profits, compared to any other month of the year.

With Black Friday comes the need by shoppers to get a variety to choose from. Before adding the products to their carts, consumers will compare different vendors until they land the best price and product quality. As a result, this has created a pool of opportunities for more businesses to join the movement in a bid to have a

E-commerce companies like Jumia, which pioneered Black Friday in Nigeria and most African countries back in 2014, has reported that the number of sellers and brands that participated in the 2019 Black Friday increased by +22%and 7% respectively from the previous year. According to Jumia, Black Friday Month is not business as usual, with most sellers recording 100 times more sales on Black Friday(s) than in usual business days. This is attributed to the increased online visibility and traffic that the vendors receive from the online platform during the campaign period; with the online platform receiving millions of visits during the campaign period.

Notably, the BF movement has become a cocktail of online and retail sales from both small and medium, as well as established businesses. A classic case is that of supermarket retailer Carrefour, that has not only strengthened its retail presence across Africa but also its online offering through partnerships with Jumia.

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Consumers save as much as 50%% For instance, the Black Friday Global estimates that consumers receive an actual average discount of about 60% in South Africa, 57% in Nigeria and 54% in Kenya; in the latter, spending approximately 9,000 KES per person in both online and brickand-mortar stores. Such levels of rebates and highly discounted products during Black Friday are breathtaking and have pushed more consumers across Africa to participate.

Image by Master1305 Employment and cross border trade A Black Friday cycle is completed by a supply chain that must work closely to provide a satisfactory customer experience. To ensure ample stock of inventory, sellers end up hiring extra hands including delivery personnel. Due to the high demand and the need to adapt to customers’ responses, most retailers and online companies outsource services and extend partnerships with third party logistics providers.

As a result, hundreds of thousands of jobs are created across the continent during the Black November month, which go a long way in easing the economic strain brought about by high levels of unemployment in Africa. According to BCG report published in March 2019, online marketplaces could create 3 million jobs in Africa by 2025.

Additionally, Black Friday has enabled entrepreneurs to do business across borders, purchasing and selling products and services from one country to another. Cross border trade is expected to further thrive in coming years, with the implementation of the African Continental Free Trade Area Agreement.

Happy New year Conclusion With all factors considered, one can confidently appraise the impact of Black Friday, and the role the annual shopping extravaganza will continue playing in lifting Africa’s economies.

Will campaigns like Black Friday help boost the penetration of ecommerce in Africa, now at only 1% as a percentage of the total retail market; to reach the rate of 12% in the US and 20% in China? As you ponder on this, allow me to wish you the very best of the Holiday Season.

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Medical Sector:

In Progress

By Samuel Tekleyesus MBA in Finance Lecturer, Researcher and Business Consultant

Ethiopia is characterized by a predominantly rural and impoverished population with limited access to safe water, housing, sanitation, food and health care. Health, as part of the environment and social services, has recorded success marked by the increased estimated healthy life expectancy at birth to 64.8 years in 2016 from as low as 45 years in 1990. The health status of the country’s population indicates that about 80% of diseases are attributable to preventable conditions.

According the World Health Organization (WHO) estimates, a Non-Communicable Diseases related annual death rate of 34% in Ethiopia However, Ethiopia is displaying decreasing trend of these conditions through the effective performance of health extension programs.

FDRE Ministry of Health reports indicate that Ethiopia has been implementing successive Health Sector Development Plans (HSDPs).

Ethiopia’s health indicators have been remarkably improved. The quality of health care in terms of improving patient safety, effectiveness, and patient-centeredness, in both public and private facilities, is often inconsistent and unreliable.

The Health Sector Transformation Plan (HSTP) is the national health sector strategic plan, which covers 2015 –2020. The Plan has three key features: quality and equity; universal health coverage and transformation. The HSTP sets out four pillars of excellence: 1. Excellence in health service delivery 2. Excellence in quality improvement and assurance 3. Excellence in leadership and governance 4. Excellence in health system capacity 38 Abyssinia Business Nework

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The impact-level targets of HSTP by 2020 are to reduce: • Maternal mortality ratio (MMR) to 199/100,000 live births (LB) • Under five-year, infant and neonatal mortality rates 30, 20 and 10 per 1,000 live births respectively; • HIV incidence by at least 60% compared with 2010 and achieve zero new infections among children; • The number of TB deaths and incidence rate by 35% and 20% respectively.

• Diminish malaria case incidence and mortality rate by at least 40 percent.

Currently, more than 12,000 private health facilities are providing health services in Ethiopia. The government is playing a facilitation role and supports private sectors in the area of quality of care and quality services. The government is also working with private sectors in order to build advanced tertiary care hospitals to attract medical tourism.

The Ministry of Health is committed to reform agencies such as the Pharmaceuticals Fund and Supply Agency (PFSA) for providing consistent and reliable services to the healthcare system. The MOH is also working to establish

the Sustainable Development Goals of the country.

cancer diagnosis centers at seven hospitals and to strength the services at 48 health facilities.

The healthcare environment in Ethiopia, while striving to meet the needs of its citizens, is lacking in adequate professional medical providers and services. According to Ethiopian HSTP report, the country is still facing a triple burden of diseases consisting of communicable diseases, non-communicable diseases and injuries. A growing number of Ethiopians travel overseas each year for treatment to the Middle East, Europe, South East Asia and South Africa. It is not just treatment; many just want to travel for a medical checkup as they are not happy with the quality of the local health services and prefer to get checked abroad.

The number of foreign hospital representatives in Addis Ababa is increasing significantly to address a growing demand of medical travel in the country.

There are representative offices of Indian, Turkish, Saudi Arabian and South African hospitals in Addis Ababa. The average cost of each trip is estimated to be $ 20,000.Ethiopians spent over 30 million dollars in medical treatment expenditure abroad, in 2012, according to estimates by the Ministry of Health. Exactly how many Ethiopians travel for health reasons is not known, but local estimates put it at over 20,000 per year.

In Conclusion, Ethiopia is working to strengthen the healthcare system to align it with

The country has a large, predominantly rural, and impoverished population with poor access to safe water, housing, sanitation, food and health service. Under the second Growth and Transformation Plan (GTP II), the Ministry of Health is planning to upgrade different aspects of the healthcare through PPP. With an increasing middle class, the government is facing an increase in non-infectious diseases such as cancer, diabetes, heart diseases, and high blood pressure which need to be addressed. A growing number of Ethiopians travel overseas each year for treatment to the Middle East, Europe, South East Asia and South Africa.

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Great Run Ethiopia 2019 Shines

By Staff Writer Founded in 2001 by renowned economist Peter Middlebrooks, British marathon Olympian Richard Nerurkar and the most successful distance runner of all time, Haile Gebrselassie, the Great Ethiopian Run is ten kilometers of running revelry, looping through the streets of central Addis Ababa.

At the front, the race could hardly be more competitive. Distance legends like Kenenisa Bekele and Tirunesh Dibaba have competed in the event, and its winners consistently go on to have successful international careers. Indeed, the race is the number-one showcase for Ethiopia’s outstanding talent pool. No other street race in Africa offers a similar mix of competition and atmosphere and, in a country which idolizes its runners; this is where legends are born.

international level, and created a platform for participants to convey different messages.

2020 sees the 20th edition of Africa’s biggest annual mass-participation event take place. The Great Ethiopian Run must be experienced to be appreciated, and the organizers anticipate it to be extra special this year! Whether it takes participants 36 minutes to dash round behind the elites or 2 hours to walk round, dancing and stopping for draft beer on the way, Any participant can be one of 45,000+ happy revelers redefining the streets of Addis Ababa on the most exciting day of the year. The Great Ethiopian 10k is a truly epic experience, year after year.

Behind the sizzling fast elites, join thousands of others to pit your training against the clock or to soak up the atmosphere of the music, the drinks stations, the friendliness and the city in the sunshine.

This 2019 Great Run Ethiopia brought together 38,000 local and 450 foreign participants, rejoicing over this annual colorful event. What makes this event unique was that a well-organized and designed dance called “Hahu warm-up dance” was performed by the participants.

Besides the competition held among elite athletes of different sex and age groups, the event, as usual, appeared to promote the nation’s tourism potential at the 40 Abyssinia Business Nework

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Photo by Natnael Fikru (taken at the 2019 TOTAL Great Ethiopian Run) 2019

Photo by Natnael Fikru (taken at the 2019 TOTAL Great Ethiopian Run)

Photo by Natnael Fikru (taken at the 2019 TOTAL Great Ethiopian Run) Abyssinia Business Nework ታህሳስ 2012 / December

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‹‹የማይሞተው ንጉሥ›› ጌጡ ተመስገን ( የጉዞ ማስታወሻ ) ጋሞሌ መንደር የካቲት 8 ቀን 1996 ዓ.ም. ከቀትር በኋላ (9 ሰዓት)

‹‹ናካይታ›› (Nagayta) የኮንሶዎች የወል ሰላምታ ነው፡፡ ሰላም በላያችሁ ላይ ይፍሰስ እንደ ማለት ነው፡፡ ‹‹ናካይታ›› ይሁን መልሳችሁ፡፡ በኮንሶ ማኅበረሰብ ከሥራ አልያም ከመንገድ የሚመጣን ሰው ‹‹ኦካዶ››፣ ‹‹አሻማ››፤ ‹‹እንኳን ደህና መጣህ›› ይሉታል፡፡ እንኳን ደህና መጣችሁ! አሁን በታላቁ የምሥራቅ አፍሪቃ ሸለቆ፤ በኢትዮጵያ ዋና ስምጥ ሸለቆ ደቡባዊ ዳርቻ ፤ ኮንሶ እንገኛለን ፡፡በሰሜን ኢትዮጵያ ነገሥታት የሕዝቡን ሐሳብ ለማወቅ ‹‹አዝማሪ ምን አለ?›› ይሉ ነበር፡፡ በደቡብ ኢትዮጵያ በኮንሶ ማኀበረሰብ ‹‹ ቶያንፓያ ወይም ኹማንባያ ምን አሉ?›› ይባላል፡ ፡ ኹማንባያ በሀገር ሊመጣ ያለውን ክፉና በጎውን ቀድመው የሚያዩ፣ መጪውን ጊዜ የሚተነብዩ፣ እንደ ነቢያት የሚቆጠሩ ግለሰቦች ናቸው፡፡ ቶያንፓያ፤ ኹማንባያ ‹‹ ጨረቃን አይተው፣ ከዋክብትን ፈትሸው ዘመኑ የደስታና የጥጋብ ወይም የችግርና የመከራ መሆኑን ይተነብያሉ ›› ይባላል፡፡ ኮከብ ቆጣሪዎች ባልና ሚስት፤ ከዋክብትን በመመልከት፣ ዝናብ ሁኔታን፤ ረሃብንና ጥጋብን ይጠቁማሉ፡፡ የከዋክብት ስብስብን ‹‹ቡሳ›› እንዲሁም ከዋክብት መስመር ሰርተው ሲነጉዱ ‹‹አራባ›› ይሉታል በመመልከት 42 Abyssinia Business Nework

ምንጭ (በቅርቡ ለህትመት ከሚበቃ የተወዳጁ ጋዜጠኛ ጌጡ ተመስገን የጉዞ ማስታወሻ መጽሐፍ የተወሰደ) መጪውን ጊዜ ይተነብያሉ፡፡ ቅርፊቶች የተቀመመ ተፈሮአዊ አስከሬን ማድረቂያ ይጠቀማሉ፡፡ የካላ ወልደዳዊት እነዚህ መጪውን ጊዜ አመልካቾች፣ የሆድ ዕቃ ፈሳሽ (አንጀት፣ ሳንባ፣ ኩላሊት፣ በ1995 ዓ.ም. የካላ ወልደዳዊት ካዮቴን ጉበትና ልብ) በማውጣት አስከሬኑ ሳይፈርስ፤ ዜና እረፍት ሲሰሙ ምን ተንብየው አስከሬን የማድረቅ ሥራ አከናውነዋል፡፡ ይሆን? … ካላ ወልደዳዊት ካዮቴ፤ የኬርቲታ ጎሳ 19ኛው ባህላዊ መሪ ነበሩ የሟቹ የጎሳ መሪ ሆድ ዕቃ ወጥቶ በእንስራ ፡፡ ለ13 ዓመታት የ‹‹ኮንሶ ንጉሥ ነኝ›› ተቀምጧል፡፡ ዓይናቸውም ወጥቶ የሚል ድምፃቸውን እያሰሙ አርፈዋል ፡፡ የሰጎን እንቁላል በዓይን ቅርጽ ተቀርጾ ተገጥሞላቸዋል፡፡ የአስከሬኑ የደረቀው የኮንሶ ጎሳዎች ዘጠኝ ናቸው፡፡ ዘጠኙም ሰውነት ጥቁር ጣል-ጣል ያለበት ደማቅ ቀይ ጎሳዎች የቤተሰብና የወል ስም አላቸው፡፡ አቡጀዲ ለብሶ ወንበር ላይ እንዲቀመጥ ሳውዳታ (ቶላ ማቶ)፣ ተደርጓል፡፡ አርካማይታ (ቶላ ሃልቢያ)፣ እሻላይታ (ቶላ አፋርታ)፣ ቶክማሌታ (ቶላ አይሎ)፣ አስከሬኑን ለመጎብኘት ተጠጋን፡፡ ከአስከሬን ትክሳይታ (ቶላ ኦርጌታ) ፣ ማኽሌታ ጠባቂዎቹ አንዱ ‹‹ጌቶች በጣም ስለታመሙ (ቶላ ከርዲባ)፣ ፓሳንታ (ቶላ ሎኾፓ)፣ መናገር አይችሉም፡፡ ስለዚህ የክብር ኤላይታ (ቶላ ትጫኔ) እና ኬርቲታ (ቶላ ሰላምታ ብቻ አቅርባችሁ ውጡ›› አለን፡፡ ካላ) ይባላሉ፡፡ አስከሬኑ የተቀመጠበት ክፍል ውስጥ ገባን፡ ፡ እንደታዘዝነው እጅ ነስተን ወጣን ፡፡ የካላ ዘጠኙም የጎሳ መሪዎቹ እኩል ባህላዊና ወልደዳዊት አስከሬን ጠባቂዎች ለዘጠኝ መንፈሳዊ የሥልጣን እርከን አላቸው፡ ወራት በክብር ዘብ ቆመዋል፡፡ በዚህ የጥበቃ ፡ ካላው ሲሞት በትረ ሥልጣኑ ከአባት ጊዜ የሚፈልጉትን እህል ውሃ ለማግኘት ‹‹ካላ ወደ በኩር ልጅ ይተላለፋል፡፡ እንዲህ ያለ ምግብና መጠጥ አሰኝቷቸዋል›› እያሉ ያዛሉ፡፡ በዚህ ትዕዛዝ አስከሬን ጠባቂዎቹ ሰኔ 1995 ዓ.ም. ካላ ወልደዳዊት ካዮቴ ከጥሬ እስከ ብስል፣ ከጨቃ እስከ ደረቅ የማር በጨጓራ ሕመም ምክንያት በ60 ጠጅ ለዘጠኝ ወራት አጣጥመዋል፡፡ የአስከሬን ዓመታቸው አረፉ፡፡ ይህ ዜና እረፍት ጠባቂዎቹ ትዕዛዝ በሟቹ ቤተሰብ ሳይጓደል በኮንስኛ ‹‹ ፖቆላ ኢ አርማይቶዴ›› ተፈጽሟል፡፡ የአስከሬን ጠባቂዎቹ ትዕዛዝ ይባላል፡፡ ትርጉሙም ‹‹ፖቃላው ከዘጠኝ ወራት፣ ዘጠኝ ቀናትና ዘጠኝ ሰዓታት (ጌቶች) ጉንፋን ይዟቸዋል›› ማለት ነው፡ በኋላ አብቅቷል፡፡ ፡ በማኀበረሰቡ ዘንድ ጌቶች ሞቱ ተብሎ አይነገርም፤ አይወራም፡፡ ‹‹ባህላዊ በጋሞሌ መንደር ‹‹ማንታ›› በሚባል ሞራ፤ መሪያቸው›› በልባቸው ‹‹የማይሞተው የሕዝብ አደባባይ ሦስቴ ከበሮ ተመታ፡ ንጉሥ›› ነውና! ዝንታለማዊ እንደሆነ ፡ በተለምዶ ‹‹ጥሩንባ ነፊ›› የምንለው ሰው ያስባሉ፡፡ (መልዕክተኛ) በኮንሶኛ ቋንቋ ‹‹አራፓታ›› ይባላል፡፡ አራፓታው ‹‹ፖቆላ - ጌቶች የካላ ወልደዳዊት ካዮቴ አስከሬን አረፉ›› እያለ ድምፁን አሰማ፡፡ መንደርተኞቹ ለዘጠኝ ወራት፣ ዘጠኝ ቀናትና ዘጠኝ ተሰባሰቡ:: ይሁንና ለቅሶና ዋይታ ሰዓታት ማርና ቅቤ እየተቀባ ተቀመጠ፡ አልተደመጠም፡፡ የጠመንጃዎች አፈሙዞች ፡ ዘጠኝ (ወራት፣ ቀናትና ሰዓታት) ወደ ሰማይ ተወደሩ፡፡ ጥይት ተንጣጣ፣ በኮንሶ የሚኖሩትን ዘጠኙን ጎሳዎች የኀብረት ዝላይና ጭፈራ፣ የ‹‹ማና›› ይባላል የሚወክል ነው፡፡ የካላው ሚስት ቢሞቱ ትዕይንት ተጀመረ፡፡ ግን ለስድስት ወራት፣ ስድስት ቀናትና ስድስት ሰዓታት አስከሬናቸውን በክብር የካላው፤ የፖቆላ ቤተሰብ ንብረት የሆኑ ቆይቶ ሥርዓተ ቀብራቸው ይፈጸማል፡፡ ቲንባዎች (ከበሮዎች) ተደለቁ፡፡ ከበሮ መቺዎቹ ወደ ፊትና ወደ ኋላ እየተመላለሱ፣ ሟቹን ካላ ግብጻዊያን ለአስከሬን ማድረቂያ መሚ ወልደዳዊትን ጀግንነት እያነሱ መዘከር ያዙ፡ እንደሚጠቀሙ ሁሉ፣ ኮንሶዎችም ፡ አስከሬኑ በእርጥብ የላም ቆዳ ተጠቀለለ፡ ከተለያዩ ቅጠላ ቅጠሎችና የዛፍ ፡ ለሟቹ ክብር ለመስጠትም ደማቅ ቀይና

ታህሳስ 2012 / December

2019

ጥቁር ጨርቅ ለበሰ፡፡ በአስከሬኑ ግንባር የነበረው የመሪዎች ምልክት ‹‹ኻላሻ›› አልወለቀም፡፡ አስከሬኑ ወንበር ላይ እንደተቀመጠ ነው፡፡ ሐዘንተኞቹ አስከሬኑን የያዘውን ወንበር በትከሻቸው ተሸክመው ለቀብር ጉዞ ጀመሩ፡፡ በጉዞ ላይ አስከሬኑን በርቀት ለተመለከተው በሕይወት ያለ ሰው ወደ መቃብር የሚጓዝ ይመስላል፡ ፡በእርሳቸው አምሳያ ከጥድ እንጨት የተቀረፀው የጀግንነት ሐውልት ‹‹ዋካ››አስከሬኑን እየተከተለ ነው፡፡ የመቀበሪያው ጉድጓድ አስከሬን እንደተቀመጠ እንዲቀበል ተደርጎ ተቆፍሯል፡፡ አስከሬኑ ከእነ ወንበሩ ጉድጓድ ውስጥ በክብር አረፈ፡፡ የካላ ወልደዳዊት ካዮቴ ጉይታ (ጉዩ) ሥርዓተ ቀብር ከዘጠኝ ወራት፣ ዘጠኝ ቀናትና ዘጠኝ ሰዓታት በኋላ የካቲት 8 ቀን 1996 ዓ.ም. ተፈጸመ፡፡ ‹‹የጌቶች›› አስከሬን የመቃብር ጉድጓድ ውስጥ ገባ፡፡ በእንስራ ተቀምጦ የነበረው የሆድ ዕቃ እንጥፍጣፊም ተቀበረ ፡ ፡ ከመቃብራቸው አናት የጀግንነት ሐውልት (ዋካ) ቆመላቸው፡፡ ይህ የቀብር ሥነ ሥርዓት እንደ ዘይሴ ማኀበረሰብ አስደምሞኛል፡ ፡ የዘይሴ ማኀበረሰብ ባህላዊና መንፈሳዊ መሪ ሲሞት፣ አስከሬኑ መቃብር ጉድጓድ ውስጥ ከገባ በኋላ የሚሞላው አፈር ሳይሆን ጥሬ እህል ነው፡፡ በካላ ወልደዳዊት ካዮቴ ሥርዓተ ቀብር የበኩር ልጃቸው አልተገኙም፡፡ ‹‹አቶ ገዛኸኝ ወልደዳዊት ለምን አባታቸውን አልቀበሩም?›› ስል ራሴን ጠየቅሁት፡ ፡ መልስ አጣሁለት፡፡ መልስ ፍለጋ ‹‹አልጋ ወራሹ››ን አቶ ገዛኸኝን መፈለግ ጀመርኩ፡፡ ጋሞሌ አምባ ከዋርካው ሥር ነጠላ ጋርደው በተጠንቀቅ የቆሙ ሰዎችን ተመለከትኩ፡፡ ወደ እነርሱ ተጠጋሁ ፡፡ ‹‹እነማን ናቸው? … ማንን እየጠበቁ ነው?›› እያልጎመጎምኩ ሳለሁ፣ ነፋስ ነጠላውን ገለበው፡፡ አቶ ገዛኸኝ ወልደዳዊት ተቀምጠው ተመለከትኩ፡፡ አልጋ ወራሹ ከተቀመጡበት ተነሡ፡፡ የአልጋ ወራሹ ጠባቂዎች ስለት (ጋሻ፣ ጎራዴ፣ ጦር፣ የአውራሪስ ቀንድ)

ካላ ወልደዳዊት ካዮቴ ጉይታ (ጉዩ)

ይዘዋል፡፡ አልጋ ወራሹ፣ ልጃቸው አቶ ገዛኸኝ ወልደዳዊት ሲንጎማለሉ፣ ጠባቂዎቻቸው የሙት መንፈሱ እንዳይወድቅባቸው በተጠንቀቅ እየጠበቋቸው ነበር:: አቶ ገዛኸኝ አባታቸውን ያልቀበሩበት ምክንያት የአባታቸው የሙት መንፈስ እንዳያገኛቸው፤ እንዳያርፍባቸው ነበር ፡ ፡ የካላ ወልደዳዊት ካዮቴ የእጅ አምባር ‹‹ቱማ››፣ አልባሳታቸውና የመመገቢያ ዕቃዎቻቸው ተሰበሰቡ፡፡ ያልተኮላሸ ጠቦት ታረደና በበጉ ‹‹ፈርስ›› የማጽዳት ሥራ መከናወን ጀመረ፡፡ የአራት ልጆች አባት የሆኑት ገዛኸኝ ወልደዳዊት ካዮቴ፤ ‹‹ሙልቃ›› (የብረት አምባር) በእጃቸው በማሠር ሃያኛው የኬርቲታ ጎሳ ባህላዊና መንፈሳዊ መሪ ሆኑ፡፡ የአባትና የልጅ፤ የካላው ቀብርና የልጃቸው ሥልጣን ርክክብ ሥነ ሥርዓት መሳ ለመሳ ተካሂዶ አበቃ ፡፡ የዚያኑ ቀን ባህላዊ ሥርዓቱን ተከትሎ፣ ካላ ገዛኸኝ ማደሪያቸውን ከቤተሰባቸው ነጠሉ፤ ከልጆቻቸው ጋር ማዕድ መቅረብ አቆሙ፡፡ ከእንግዲህ ከራሳቸው የእርሻ መሬት ከተዘራ፣ ከተፈጨ በቀር ከቤተሰባቸው ጋር መመገብ አይፈቀድላቸውም ፡፡ ከቤተሰብ፣ ከጎረቤት፣ ከገበያ የሚመጣ እህል ውሃን መቅመስ አይችሉም፡፡ ባህላዊ ሥርዓቱ አይፈቅድላቸውም፡፡ ይህ ከካላ ቤተሰብ ጋር ተያይዞ የመጣ ባህላዊ ሥርዓት ነው፡፡ የጎሳ መሪዎች ከፍተኛ ሥልጣንና ሀብት ያላቸው ናቸው፡፡ የእነዚህ መሪዎች ዋና ሥራ ሸንጎ ይዞ መዳኘት ነው፡፡ የጎሳ መሪዎች እንደ ተራው ሕዝብ ቀፎ አይሰቅሉም፤ እርሻም አያርሱም፡፡ ይሁንና

ሰፊ መሬት ስለሚኖራቸው ወዶ አራሹን በማሳረስ ይተዳደራሉ፡፡ አንድ የኮንሶ የጎሳ መሪ ከቤቱ ወጥቶ የትም ሄዶ አይበላም፣ አይጠጣም፡፡ይህንን ሥርዓት ካላው ባይፈጽም፣ የካላው የሥልጣን ኃይል ይረክሳል ተብሎ ይታመናል፡፡ በጋሞሌ መንደር የጎሳ መሪዎች ከሚያስተዳድሯቸው ጫካዎች መካከል ሙራ ካላ ይጠቀሳል፡፡ ካላ ወልደዳዊት የኖሩትም፤ የተቀበሩትም በሙራ ካላ ጫካ ውስጥ ነው፡፡ ከጋሞሌ አምባ መንደር አዛውንቶች ጋር ወግ ይዣለሁ፡፡ ‹‹በሙራ ካላ ጫካ 19 የጎሳ መሪዎች ተቀብረዋል፡፡ የቀድሞዎቹ ካላዎች አስከሬን ለ9፣ 18፣ 27 እና 36 ዓመታት ቆይቷል›› ይላሉ አዛውንቶቹ፡፡ የአስከሬኑ የቆይታ ዘመን የሚወሰነው የሀገሩ ሰላምና ደኅንነት ተጠንቶ፣ የጎተራው የእህል መጠን ግምት ውስጥ ከገባ በኋላ ነው፡ ፡ በሙራ ካላ ጫካ ‹‹ኦላሂታ››፤ የትውልድ የሥልጣን ዓርማ ለማዘጋጀት ካልሆነ በቀር ዛፍ አይቆረጥም፡፡ በኮንሶ ምድር ዛፎችን መቁረጥ ኃጢአት ነው፡፡ ከሀገር ሽማግሌዎች ፈቃድ በስተቀር ከቅዱስ ጫካ ዛፍ የሚቆርጥ ሰው ያብዳል ወይም ይሞታል ተብሎ ይታመናል፡፡ እንዲያም ሆኖ ግን የመጥረቢያ ድምፅ ከተሰማ፣ የኮንሶ ማኀበረሰብ አባላት የዛፉን ሕይወት ለመታደግ ይሯሯጣሉ፡፡ ‹‹ዛፍ ሕይወት ነው!›› የሚለው መርህ በተግባር የተረጋገጠው ከኮንስዎችና ከጌዲኦዎች ምድር ነው፡፡ በጌዲኦ ባህል መሠረት፤ ባልና ሚስት ብቻቸውን ፍቺ ሊፈጽሙ ይችላሉ፡፡ ይህ የሚሆነው ከጌዲኦ ተፈጥሮአዊ ደን ውስጥ ያለ ፈቃድ ባልም ሆነ ሚስት ዛፍ የቆረጠ፤ የቆረጠች እንደሆነ ብቻ ነው፡፡ ሽማግሌ ወይም ዘመድ አዝማድ ጣልቃ ሳይገባ እንዲሁም ፍርድ ቤት፤ ችሎት ፊት ሳይቀርቡ ፍቺ ሊፈጽሙ ይችላሉ ፡፡ ከኮንሶ ምድር የአግራሞት ታረኮች ውስጥ አንዱን እንሆ÷ ከካላ ወልደዳዊት ካዮቴ ቀብር በኋላ ጡርንባ ነፊው (‹‹አራፓታ››) የቀንድ ጡሩንባውን ይዞ በጋሞሌ መንደር አልታየም፡፡ ምክንያቱም በመንደሩ ተገኝቶ እህል ውሃ ቢቀምስ ‹‹ሞቱ ይፈጥናል›› ይባላል፡፡ እናም ኣራፓታ ሞቱን ለማዘግየት ከመንደሩ ሸሽቷል፡፡ የት እንዳለ አይታወቅም፡፡ የእኛ ጡሩንባ ነፊ፤ አራፓታ…

Abyssinia Business Nework ታህሳስ 2012 / December

2019

43

ABN

10

Questions

?

By Daniel Tiruneh

“”

Henok Seyoum journalist

I am not born business person I’m anticipating reading and writing on travel Born and grew up in Addis Ababa, Henok Seyoum has been working on the promotion of Ethiopian tourism potential through various media and communication channels, including TV, online , radio and magazine productions. He has received different awards for his splendid contribution to the nation’s tourism contribution. Daniel Tiruneh holds telephone conversation with Henok to present 10 questions.

44 Abyssinia Business Nework

ታህሳስ 2012 / December

2019

Henok ; I am a journalist, a profession I like so much. I used to produce a radio program called ‘Hibir’, a documentary featuring Ethiopian cultural values and life styles of various nations and nationalities on Radio Fana. I lately understood that this program should be made in amore wider and detail manner. I was highly motivated to establish a company that I can manage, and finally I established ‘Hagere Media and Communications’. This company is simply established to become communication center for Ethiopian tourism, and contribute its share to improve the media and communication activity on tourism industry. I and my friends have done significant jobs on Ethiopian tourism for the last twelve years.

ABN: What are your media or communication products?

Henok; We have begun with a quarterly magazine entitled ‘Tuba’, focusing on tourism and cultural development; this magazine centered mainly on cultural values, tourist destinations, benefits obtained from tourism activities and related issues. We then moved to produce other print materials. For instance, we managed to publish Gondar City tourism directory in Amharic and English. We also published the tourism directory for the untold tourist potential of South Gondar Zone, and similar publication for North Shewa Zone, neighboring Addis Ababa.

To mention other products of our company: Ethiopian museum directory, Ethiopian major events and festival directory, parks and natural attractions directory,

Children tourism book on Gondar and Konso tourism potential. Currently I’m engaged in producing a show under the title ‘Guzo Ethiopia’ via Fana TV. ABN: Do you think you’re making good business?

Henok; We participate in various activities; we don’t view ourselves as business firm only; still the going gets tough and the tough gets going.

I am personally proud of repeatedly organizing national festivals like the Gondar Festival in January, Konso and Gofa festivals.

“I’m dreaming of establishing a television station that mirrors and tells my country’s untapped, unspoiled, exotic and stunning beauty of natural, cultural and historical attractions to the world.”

Photo Henok Seyoum

ABN: How did you begin your business in tourism promotion and travel media?

Abyssinia Business Nework ታህሳስ 2012 / December

2019

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Photo Henok Seyoum

“

ABN: What impact did your job bring about?

Henok; Our job has undoubtedly brought about remarkable changes in the nation’s tourism and hospitality business. Small towns are now having quality and standard hotels. Higher education institutions have begun producing highly skilled power. Hopefully I will keep on going. After the introduction of the overall political and socio-economic reform nationwide, Ethiopian Prime Minister has shown light saying the country’s tourism is the backbone of the economy; the government is also showing commitment to appointing skilled professionals in various tourism offices. But the recent chaos and unrest in some part of the country is becoming my headache.

46 Abyssinia Business Nework

“I’m dreaming of establishing a television station that mirrors and tells my country’s untapped, unspoiled, exotic and stunning beauty of natural, cultural and historical attractions to the world.”

ታህሳስ 2012 / December

” 2019

ABN: Do you have plans to engage in other businesses?

Henok; I never think of having another business except this. I’m anticipating reading and writing on travel, and share my experience to the generation as long as I get sufficient amount of money and time. I am not born business person.

ABN: Tell us about ‘Hagere Family’.

We are now ten in Hagere family.

The number has sometimes gone up; the peace and stability across the country has compelled us to depart from our colleagues in Gondar and Hawassa. But now we see light at the end of the tunnel, and the number will increase.

ABN: What exactly are you doing at present?

ABN: What honors or awards have you received?

Henok; I have received a National Green Award in radio journalism category; I also received Best Tourism Journalist Award of Hotel Show Africa last year. I really prefer and give more value for this award as Hotel Show Africa is led by professionals in the field like Kumneger Teketel.

Moreover, Adwa Historical and

Heritage Union, based-in Dallas Texas, USA awarded me Role Model Award this year. That’s enough. It’s no big deal!

ABN: What do you do during your spare time?

Henok; The product of this modern era-internet has now become my everything. I do my living by releasing information from wherever I am.

ABN: Where do you want to see yourself in the next five or ten years?

I’m dreaming of establishing a television station that mirrors and tells my country’s untapped, unspoiled, exotic and stunning beauty of natural, cultural and historical attractions to the world.

Photo Henok Seyoum

Henok ; Currently I’m an Ethiopian tour and travel journalist, serving as editor-inchief of a regular magazine. I also work as a freelance writer for the Amharic magazine-‘Fitih”, dealing with issues like tourism, culture and nature. Moreover, I write on travel memoire for Dire tube that has 3 million followers and have written a book depicting my travel experience, and personal reflection on reading. “የመንገድ በረከት” and “ጎንደርን ፍለጋ” are worth mentioning. I have dedicated my childhood to Ethiopian tourism. I’m now addicted to tourism; no one can get me out of tourism. Where can I get to? I don’t mind having

prestige or not. I’m happy as I am thoroughly familiar the insand-outs of my country. I’m the one who freely move everywhere during chaotic and unstable condition. I’m proud of being an Ethiopian. I hope one day everything I’m dreaming of will come true.

Photo file onetour peace fashion Photo file zelalem Abyssinia Business Nework ታህሳስ 2012 / December

2019

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Abyssinia Business Nework

ታህሳስ 2012 / December

2019

Introducing our new Identity

Opening of a new chapter Fruitful years, bright future. w w w . b e r h a n b a n k s c . co m

Tel +251 11 663 0127 / +251 11 618 5732 +251 11 662 9568 Fax +251 11 662 3431 Swift BERHETAA E-mail info@berhanbanksc.com www.berhanbanksc.com P.O.Box 387 Code 1110, Addis Ababa, Ethiopia

Abyssinia Business Nework ታህሳስ 2012 / December

2019

Abyssinia Business Nework

ታህሳስ 2012 / December

2019