Abyssinia Business Network /ABN/ March 2022 Building the Future by Abyssinia Business Network / ABN /

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MANAGING DIRECTOR Daniel Tiruneh MANAGING EDITOR Getachew Alemu EDITOR IN CHIEF Aklile Tsige aklile08@gmail.com +251 911 837 863 CONSULTANCY Zeima Ahmed STAFF WRITERS Samuel Teka Mekdes Paulos Ketema Kebede Teshome Fantahun REPORTER Josephine Wawira Kamba Anthony Joseph Oduha DESIGNER Daniel Tiruheh PHOTO Sol Image WEB ADMIN Amanuel Wakshum Rahel Tesfaye DISTRIBUTION Hailu Abesse GRAPHICS DESIGNER Elias Tesfaye CAMERA MAN Dagim Chalchisa MARKETING Sosena Bewketu PARTNERS Ethiopia Culture And Tourism Addis ababa police Commission Ethio Great Investment Support Service PLC Abyssinia Business Network is published by EYUDAN MEDIA PLC business license no .KK/AA/14/706/661438/2009 ADDRESS Kirkos Subcity ,Wereda 02 , House No 545/B Meskel Flower

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EDITORIAL

Edi

Building

the Future The construction industry in Ethiopia is expected to expand by 4.7% in real terms in 2021 - up from a growth rate of 3.1% in 2020, according to various sources. Construction activities held up relatively well despite the outbreak of the Coronavirus (COVID-19) pandemic. The government did not impose a strict lockdown in response to the outbreak, and although it imposed a state of emergency in early April 2020, construction activity was encouraged to continue during the crisis, which helped industry output growth in 2020. The industry is expected to register an annual average growth of 8.3% between 2022 and 2025, supported by investments in transport, electricity, tourism, manufacturing, and industrial park projects. The country aims to become a light manufacturing hub in Africa and a lower-middle-income economy by 2025. To achieve this, it plans to increase the number of operational industrial parks in the country from five in 2018 to 30 by 2025. In June 2020, the government unveiled its 10year economic development plan, which mainly

focuses on the agriculture, tourism, manufacturing, Information and Communication Technology (ICT) and mining sectors. The construction industry's growth over the long term will also be supported by the government's focus on improving ease of doing business in the country, with a specific focus on improving the processes involved in obtaining construction permits and getting credit. Foreign consultancy firms produce project managers for designing large scale buildings, implementing quality management and supervising projects. There are also huge opportunities for civil industries due to the outcropping of specialized projects with the use of advanced technology. A 10-year master plan to connect major regions in Ethiopia requires the professional knowledge of civil engineers and project managers. This presents a huge opportunity for such professions. It should be noted that Ethiopia is naturally abundant in a number of materials utilized in the construction industry. These include marble, granite, limestone, clay and gypsum.at present, the nation lacks the facilities to extract these minerals for processing. Cement, iron or steel are some of the areas where the construction industry in Ethiopia appears to be excelling, but lacking. Overall, the construction revolution in Ethiopia, embracing the growing residential, industrial, infrastructure, civic and hotel constructions is moving forward at a terrific pace in Ethiopia, but the move needs to be in line with professionalism, transparency, accountability and state-of-theart project management. Moreover, international companies are required for their expertise, knowledge and product quality to help lead the country further along the path to success, through building Ethiopia’s future. Abyssinia Business Network / ABN / 2022

Aklile Tsige

Editor-In-Chief

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

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Building

THE FUTURE Getting Image 06

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ETHIOPIAN

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CONGRATULATIONS! Abyssinia Business Network/ABN/ delightfully congratulates all Ethiopians and athletes who shined in the 18th World Athletics Indoor Championships, held from 18 to 20 March 2022 held in the Serbian capital, Belgrade, on your splendid and unwavering victory.

World indoor record-holder Gudaf Tsegay didn’t leave anything to chance in her quest to win the women’s 1500-meter crown. The Ethiopian led the final wire-to-wire in a solo 3:57.19, breaking the championship record. Her teammates Axumawit Embaye (4:02.29) and Hirut Meshesha (4:03.39) finished second and third, respectively, to complete a podium sweep for Ethiopia. According to World Athletics, it’s the first time one country has swept the medals in any discipline at the World Athletics Indoor Championships. Ethiopia has secured 4 gold, 3 silver and 2 bronze medals from the 18th World Indoor Championship Sweep in Belgrade, standing first at a global arena. Congrats on your fabulous victory. We Ethiopians always know you are different from others. Your achievement is truly commendable so keep up the good work. Congrats again!

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ETHIOPIA

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I D L I E FUT

CONTENT

YONAS AYALEW / Eng./

22 10

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MULUGETA TEFFERA

N I D URE

FUT

Dr. LAWALLEY COLE

Jiří Šíma

SITRA ALI

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Smart City

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BINYAM ALEMAYEHU

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CEMENTING The ECONOMY By ABN Staff Writer The construction industry is a major economic growth driver for Ethiopia. Massive government investment in infrastructure and residential building projects is turning the country into one of the continent’s highest performing economies. Rapid urbanization rates have created a huge need for improved infrastructure systems and a big housing backlog. Demand for quality building materials, for which Ethiopia is heavily dependent on imports, is already on the rise and is expected to skyrocket in the near future. The industry is also characterized by a large number of microentrepreneurs, the majority of whom operate in the country’s informal economy. Ethiopia’s formal construction sector comprises indigenous and indigenized firms, as well as numerous major foreign civil engineering and construction companies. Ethiopia’s construction sector is one of the most robust in Africa. Conditions are ripe for a surge in building across the country. The updating and building of new infrastructure links, residential developments and so on is of considerable interest to the Ethiopian Government. Indeed, development of these areas features heavily in the nation’s Second Growth and Transformation Plan (GTP II). The Ethiopian Construction Works Corporation (ECWC), a newly established public enterprise as per the Council of Ministers Regulation Number 366/2015 and 390/2016 on 28 Sep. 2016, was founded with the authorized capital of over 20.3 billion ETB of which over 7.7 billion ETB is paid up in cash and in kind. ABN sat with Engineer Yonas Ayalew Tessema, CEO, Ethiopian Construction Works Corporation /ECWC/, and discusses duties and responsibilities of the corporation, challenges the sector faced with, opportunities and way forward, among other issues.

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Cement factories in Ethiopia are not fully operating to satisfy the growing demand of the construction sector.”

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YONAS AYALEW / Eng./

CEO, Ethiopian Construction Works Corporation /ECWC/

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The Ethiopian Construction Works Corporation /ECWC/ is governed by the public enterprises proclamation number 25/1992. Its supervising authority is given to the Public Enterprises Holding and Administration Agency and its policy making body is the Board of Executives of the corporation whose members are appointed by the government selected from different organizations. The Corporation is an amalgamation of three formerly independent public enterprises namely: the Ethiopian Road Construction Corporation, the Ethiopian Water Works Construction Enterprise and the Ethiopian Prefabricated Building Parts Production Enterprise. ECWC was established with a mission to deliver quality construction works both domestically and overseas, to assemble construction machineries, equipment and manufacturing spare parts as well as to acquire, own and administer dams constructed by the government, collect charges from the beneficiaries of such dams and launch similar development activities. Envisioning to be one of the most competent and leading top ten African construction companies while achieving its 10-year strategic plan, ECWC, as a contractor, has been engaged in various large-scale 14

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projects such as highway roads, water, irrigation and building construction works and has so far registered encouraging achievements in accomplishing various projects. According to Engineer Yonas Ayalew one thing that hampers the construction sector in Ethiopia appears to be scarcity of construction inputs. Thus, he said, “As we need to substitute those important inputs locally, we are currently undertaking projects, including aluminum factories, ceramic and marble factories, lift or escalator assembly plant, and others.” The CEO emphasized the need to engage in mining sector, saying ECWC will jointly work with companies engage in exploration and production of crude oil, and refinery plants, adding that production of marble and granite will be another focal points in this regard. ECWC has gained significant experience in building irrigation dams across different parts of the country. This valuable practice will also help the corporation engage in agriculture specifically in agro-processing business with focus on production of export items. Moreover, the corporation has embarked on establishing a center that aims to

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There are a number of huge construction projects we need to monitor and inspect across the country. Nevertheless, we are unable to reach all these projects. So, we are compelled to implement modern technologies to monitor and inspect projects on the daily basis." carry out maintenance and assembly of famous brands of construction materials and equipment.

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“There are a number of huge construction projects we need to monitor and inspect across the country. Nevertheless, we are unable to reach all these projects. So, we are compelled to implement modern technologies to monitor and inspect projects on the daily basis.” Yonas stated that the corporation geared towards establishing various construction training institutes in a view to producing competent and dynamic professionals that include project managers and leaders in the field. He added that the corporation’s Research and Development Section is being upgraded so that the corporation could closely work with local and foreign higher learning institutions such as Addis Ababa /AAU/ University, Addis Ababa Science and Technology University /ASTU/ and Adama Science and Technology University. With regards to knowledge transfer and experience sharing, the corporation has created promising opportunity to nearly 200 professionals providing free-service Abyssinia Business Network / ABN / 2022

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in the corporation for a year with a monthly pocket-money of 3,000 birr while over 300 contractors are working with the corporation to boost their capacity and competitiveness. “There are a number of huge construction projects we need to monitor and inspect across the country. Nevertheless, we are unable to reach all these projects. So, we are compelled to implement modern technologies to monitor and inspect projects on the daily basis.” Yonas noted. Very recently following the socio-political change in the country, ECWC has gone through three reform agendas to modernize the construction sector in the country. It has effectively undertaken organizational reform to renew and set corporation’s objectives, goals, duties and responsibilities. Reform on project management was the second task the corporation has carried out in a bid to establishing formal and organized project management by identifying basic problems. Industrialization and digitization is the third reform of the construction process that is facilitated by topics like Building Information Model /BIM/ and Lean Construction, the use of drones and installed cameras as well as fleet management technology are supposed to drive the transformation of this industry. The result will be an integrated project delivery network in the construction industry.

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“As an institution, there is no single construction project ECWC cannot undertake; we are preparing ourselves to move ahead and carry out projects we were not supposed to do previously. For example, local contractors were not entitled to engage in high-rising building construction, but these days we’re dealing with projects, starting from a 4-basement plus 21 storey building and above.” He said. Yonas indicated that ECWC does not remain to be a business institute; it’s also a policy institute that is mandated to implement the country’s construction activities through building the capacity of various professionals. He further said that ECWC is currently working on operating its training centers in Addis Ababa, Modjo and Chancho to produce competent and highly skilled project managers, artisans and vehicle operators respectively. ECWC has put in place cost management reform otherwise known as threat management tool in order to remotely control and oversee construction projects and has clearly reduced Abyssinia Business Network / ABN / 2022

travel costs and time. More importantly, it helps forward possible solutions to project problems and create proper communication among professionals. The CEO said that ECWC has now become competent in the country’s construction sector, standing neck-toneck with the various Chinese construction companies operating in Ethiopia, adding that the corporation plans to cross border and work in Djibouti with Djiboutian contractors as ECWC envisions to be African pride. He further said that the corporation has become competent in conducting feasibility study for its own projects and external customers with a view to successfully achieving its goals, adding that at the end of its 10-year plan ECWC plans to generate a total of 30 billion birr revenue per annum, and the corporation is on the right track to achieve that mission. ECWC has been certified with one of the renowned international Standards such as ISO 9100: 2015-Quality Management System, ISO 45001: 2018-Health & Safety Management, and ISO 14001: 2015-Environmental Management. This, in deed, makes the corporation the sole construction company in Ethiopia. Moreover, ECWC is working on ISO 21500: 2017- Guidance on Project Management System in reaction with other ISO standards required for the success of the construction project management in all construction projects. The major partners ECWC is working closely include Ethiopian Roads Authority, Addis Ababa Roads Authority, Ministry of Water Resources, Federal Ministry of Construction, Ethiopian Insurance Corporation, Commercial Bank of Ethiopia and private banks, among others. Dealing with corporate social responsibility, ECWC has spent over 150 million birr over the past few years. The projects include residential houses, health institutions, access roads, construction of youth centers, sport and recreation areas. In addition, the corporation has made donations to people displaced due to the war in the Northern part of Ethiopia, and to people affected by the severe draught in some parts of the country. 18

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Challenges, Opportunities It is well known that the construction industry is lagging way behind other industries when it comes to efficiency, productivity, collaboration, and standardization. As a result cost overrun, delays, quality concerns and rework are quite common in the construction industry. This situation has put immense downward pressure on project delivery teams. Because of a slump in new and pre-pandemic construction projects, contractors are facing enormous industry competition. This competition has widened the gap between rising input costs and flat project bid prices. Project owners are benefitting from this disparity for now, but that’s not a sustainable situation. As construction opportunities gradually return to pre-pandemic levels, competition between contractors will taper, giving them room to raise their bid prices and share more of their escalating project costs with owners.

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A construction project is commonly acknowledged as successful, when it is completed on schedule and within the agreed budget, with the highest quality and in the safest manner, in accordance with the specifications and to stakeholders’ satisfaction. Functionality, profitability to contractors, absence of claims and court proceeding and "fitness for purpose" for occupiers have also been used as measures of project success. For any public or private construction firms, upgrading the project performance can be taken as one of their main objectives. This can be achieved by reducing cost, finishing projects on schedule and increasing quality. The construction industry is very large, complex, and requires huge capital investments. Delay in the completion of a construction project are one of the biggest problems facing by the construction industry and can be a major problem for construction’s project participant leading to costly disputes and adverse relationships amongst project participants. Delays occur in every construction project and the significant of these delays varies considerably from project to project. “Ethiopia’s growing number of construction projects have inefficiencies that need careful management. These inefficiencies are: Construction inputs are Abyssinia Business Network / ABN / 2022

costly due to import fees. High rates of foreign exchange require further funding in Ethiopia’s private and public sectors.” “Construction delays are occurring in every phase of a construction project and are common problems in construction projects in Ethiopia. Moreover, it is well known that the delays in construction projects are the major causes of project failure.” Yonas noted. If the delay is not identified and the corrective project management decision is not taken in time a project may incur extra cost and extension of project time. There are several key factors causing delay in Ethiopian construction industries, that include difficulties in financing project by a contractor; escalation of the materials price, infective project planning, scheduling or resource management, delay in progress payments for completed works, lack of skilled professionals in the field of construction management in the organization, and fluctuating labor availability season to season. Construction project management involves directing and organizing each part of the project life cycle, from ideation to completion. It’s a holistic practice with the goal of delivering projects on time and under budget. It is a complex discipline that requires addressing many important concerns, including cost control, scheduling, procurement, and risk assessment. Project managers interact with all team members involved in a construction project, from architects to owners to contractors. 20

Ethiopia’s growing number of construction projects have inefficiencies that need careful management. These inefficiencies are: Construction inputs are costly due to import fees. High rates of foreign exchange require further funding in Ethiopia’s private and public sectors. Ethiopia’s project managers are not as adept as other European or Chinese managers; thus, making project management a hassle. “ As we’re living in a globalized world ECWC is affected by what’s going on in the world; price hike in fuel, for instance, has its own impact on the price of various construction inputs,” Yonas went on to say, “ hence, our consultants need to forward problemsolving design ideas and innovation, and the inputs should be properly controlled and managed.” Despite these inefficiencies, business opportunities in the Ethiopian construction sector have been emerging for some time now. The country has opened its doors to more foreign investors. In turn, opening opportunities for European, Chinese and other companies all over the globe, to expand their businesses and increasing the country’s employment rate. “Cement factories in Ethiopia are not fully operating to satisfy the growing demand of the construction sector.” The Ethiopian government has paved the way for European and Chinese entrepreneurs to get involved with the innovation of the country’s infrastructural development and industrial growth. Despite the risks of bringing in foreign companies, the Ethiopians are quite grateful for the assistance and business potential offered by global players.

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Infrastructure development and housing projects generously cover the landscape of modern Ethiopia. Ethiopia’s construction sector has turned the country’s financial needs into massive opportunities for foreign businesses especially those from the European nations. Numerous projects have turned around Ethiopia’s economic decline, particularly in the city of Addis Ababa. Currently, the country forms the heart of Africa’s economic evolution due to high demands in the construction sub-sectors. The wave of construction in Addis Ababa has spilled into other Ethiopian cities, causing investors to take serious measures in expanding their business in the country.

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With regards to the main construction input-cement supply, the CEO indicated that cement factories in Ethiopia are not fully operating to satisfy the growing demand of the construction sector, thus, he indicated that they should be supported to enhance their productivity. As the issue of construction quality remains to be very decisive, ECWC has always paid attention to proactively react with the rising demand in the sector, emphasizing the presence of quality control unit or team in local contractors, which should be staffed with experienced professionals in ensuring construction quality. There is competition upon entering the country’s economy. To prepare for this, contractors must be aware of the methods to get into the game

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of Ethiopian construction sectors; namely: private assignments, contractor and the competitive bidding and the negotiated contracts for public projects. Critical knowledge of these areas will serve as an opportunity for contractors to grow and fully earn the trust of Ethiopian workers and citizens. Eng. Yonas noted that as there is unfair and illegal competition among contractors, cost of health and safety, environmental issues, risk assessment and other related issues need to be considered, adding that transparency and accountability are the most important elements in the bidding process. Wrapping up his views, ECWC CEO expressed his deepest gratitude to ECWC management staff and employees, governmental and non-governmental institutions as well as private companies that have contributed significantly to the transformation of the corporation, adding that limited media coverage on the commendable activities of the corporation needs to be changed, and both electronic and broadcast media operating in the country should work on the promotion of ECWC. The corporation has been striving hard to scale up its market share. It has become profitable and endeavored to play its level best to create job opportunities for thousands of people thereby contributing to the socio-economic development of the country.

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GENERATING MUNICIPAL FINANCE By Daniel Tiruneh / ABN / Interest in cities around the world is on the rise, in large part, because more and more people are living in cities in both developed and less developed countries. The rapid increase in the urban population has put pressure on local governments to provide a range of services from water and sewer infrastructure to social services and housing. To meet the rising demands of urbanization, municipalities need adequate revenue tools to pay for services and infrastructure. Customs revenue collection means that Customs levies duties and taxes on goods permitted to be imported and exported and articles permitted for entry and exit in accordance with the Customs Law a given country, and the import and export tariff schedule. Currently, the Ethiopian tax law provides for direct and indirect taxes. The direct taxes are divided into five categories: personal income tax, rental tax, withholding tax, business profit tax and other taxes. The main types of indirect taxes applicable are value added tax (VAT), customs duty, excise and turn over taxes. Customs revenue serves as a crucial source to the national fiscal revenue, especially the fiscal revenue of the central government, a tool for national macro-control and also an important tool to protect and promote the sound development of domestic industries. Ethiopia’s annual budget is heavily dependent on customs and revenue collection that needs to be further strengthened with a view to speed up the nation’s socio-economic development. The Addis Ababa Customs and Revenue Authority, which is headed by Mulugeta Teffera is one of the units that generate the main revenue for the country at large and the city in particular. Mulugeta is a BA degree holder in Economics and MA in Development Studies, Mulugeta has been serving as the head of the authority for 2 years. Previously, he worked as a lecturer at university level and a representative of the Derashe Nations and Nationalities in the FDRE parliament for 2 terms. He was also the CEO of the Addis Ababa Automobiles and Drivers’ license control Authority and the head of Labor and Social Affairs Bureau before becoming the head of the Addis Ababa Customs and Revenue bureau. ABN talked to the head about the involvement areas of the authority, its direction, and the way moving forward. 22

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MULUGETA TEFFERA

Head, Addis Ababa Customs and Revenue Authority

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which includes successive 5 year perspective plans. As per the roadmap, in 2014, the Addis Ababa city administration planned to secure a total of 63 billion birr in revenue and customs but after a careful consideration of the city’s macro-economic trends and efficiencies of different governmental organizational, the government further extended the plan to 70 billion birr.

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Mulugeta explained that the task of tax and revenue collection is closely related to macroeconomic growth and stimulation. As a country’s macro economy becomes stronger the tax collection rate and achievements increase simultaneously. As an instance, he mentioned that in 2012 E.C the bureau planned to collect 37 billion birr, in 2013, an increased plan of 42 billion birr and in the current budget year it planned to collect 48 billion birr from tax collection and other administrational services rendered by governmental organizations. In such efforts, a major shift was observed during last fiscal year accountability for expenditure and where 100% success rate was revenue decisions, including the observed. Prior to that, such figure municipal budgetary process and was not attainable. financial management.

Municipal finance is about the revenue and expenditure decisions of municipal governments. It covers the sources of revenue that are used by municipal governments – taxes (property, income, sales, and excise taxes), user fees, and intergovernmental transfers. It includes ways of financing infrastructure through the use of operating revenues and borrowing as well as charges on developers and public-private partnerships. Municipal finance also addresses issues around expenditures at the local level and the 24

Tax administration and collection system has its own proclamation stipulating on how to collect, from whom to collect, and the role of governmental organizations and the community. As per the proclamation, the Addis Ababa Customs and Revenue Bureau has put forward a 10 year roadmap

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Mulugeta further stated that out of 420,000 tax paying businesses, 296,000 of them are level C/ low income tax payers. The Head of the bureau contended that the exact figure of business owners exceeds this number since there are non-tax payers involved in the economic setup of the city.

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He said that there are a total of less than 1000 businesses with annual revenues of 40 million (high income tax-payers) birr who receive special service provisions. The second middle level tax-payers with revenue of 5 million and above are served in 4 different branches. The low revenue income institutions have their own several branches to be served as well. The authority has a time period set out for enterprises to declare their incomes from July 1 to October 30 annually. Such service rendering efforts are being aided by technological innovations and improvements from time to time through reforms. “Once they know of their levied tax, they can pay by going to their nearest commercial bank and get the necessary clearance. In cases of complaints, payers can appeal or even go to the court if their grievances do not get solved properly.” One of the recent reforms in the customs sector is the introduction of CIG tax. However, in the contemporary world such system is considered as an obsolete one that needs modernization. Digitization of the tax collection system through a newly devised ET tax is being carried out. Through this system, low income tax payers get notified how much tax is levied against them and where they can make their payments without physically going to customs and revenue branch. Once they know of their levied tax,

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“Once they know of their levied tax, they can pay by going to their nearest commercial bank and get the necessary clearance. In cases of complaints, payers can appeal or even go to the court if their grievances do not get solved properly.” they can pay by going to their nearest commercial bank and get the necessary clearance. In cases of complaints, payers can appeal or even go to the court if their grievances do not get solved properly. The authority is now in the process of organizing an annual fund raising event where tax payers can help the poor and destitute of Addis Ababa city. Such actions show that the Addis Ababa customs and revenue bureau is not only a cash collector but also an organization that stands for the benefit of the community. Awareness creation about tax and revenue collection is key as the head of the authority highlighted. The government of Ethiopia cannot be effective in collecting the needed tax without the provision of a robust policy. Macro-economic sectors need to thrive in order to affect

those changes. Such policies will create an environment where tax payers can be maintained in the business sector. To do this, several measures are taken by the city administration. Mulugeta stated an instance where 7000 tax payers were given tax clemency in the wake of the COVID-19 pandemic. In such ways, poorly performing businesses were given a second chance to continue their operations even though the authority had to lose close to 10 billion birr in tax payments. He also mentioned the case where officials of the authority went door to door to congratulate business owners in the city for paying their taxes and fulfilling their national responsibilities. Such amicable relation building efforts create a conducive environment where businesses can become motivated to thrive, increasing the efficiency of the authority in reciprocal.

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As it stands, the awareness level of tax payers is not enough. Not only that, professionals in the customs authority possess limited skills and professionalism levels to adequately serve the tax payers. This is a consequence of prior perception and reputation of tax payers in the eyes of tax and customs authority bureaus both in city administration and national levels. Business owners are often perceived as inferior parties that often evade tax. Such tarnished perception often prompts business owners to avoid paying taxes even though they have proper and adequate awareness about the benefits and importance of taxes.

“Changing the mindsets of service providers through capacity building, awareness creation and building the Ethics and integrity of professionals are the key focus areas of the authority. The authority has also commenced a movement entitled ‘Let’s build good Ethics’ with a dedicated department to carry out the task.” 26

Mulugeta went about to mention that there are 2 channels of creating awareness about taxes. One of them is the establishment of tax awareness creation departments in every branch of the authority. The department carries out periodical trainings and workshops for tax payers. It is also working with Addis Ababa city administration education bureau and Education minister to create awareness about tax for the youth generation. Experts from the authority teach the youth about tax systems through the Addis Ababa education bureau’s radio program. These awareness creation platforms are important since a shift in generational knowledge is necessary to change the old-age perception about tax and its beneficial aspects. When asked about the professionalism level within the branches of the authority, Mulugeta responded by saying that in the provision of the tax service, it is vital to get a clear picture and understanding of two concepts; service and Ethics. As much as possible the services of Addis Ababa city customs and revenue authority should be effective, easy and accessible. To do this, the working ways, organizational schemes and professional capacity of the authority should excel and maintained at the highest level possible. To this end, the mentality of the authority should change the mind set of tax collector officials in perceiving the tax payers as their kings. Affecting such changes may not come easy given the trends that

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have been observed thus far. Hence, changing the mindsets of service providers through capacity building, awareness creation and building the Ethics and integrity of professionals are the key focus areas of the authority. The authority has also commenced a movement entitled ‘Let’s build good Ethics’ with a dedicated department to carry out the task. The department periodically assesses the wealth, ethics and other aspects of new employees that join the authority. This is used as criteria to judge whether the employees uphold their duties and responsibilities to the levels of required expectations. In cases where employees fail to comply, necessary actions will be taken. Over the past 6 months corrective actions were taken on 118 professionals who failed to deliver with integrity and good ethics. Regarding the tax payers, the authority has 3 different operations; tax operations, law enforcement and modernization departments. Mulugeta specifically mentioned the task of the law enforcement department which undertakes the task of taking necessary legal actions against tax payers who do not comply to the law and also recognizing other parties who abide by the law in fulfilling their responsibilities. The authority is operating under

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the 100+ or “Greater tax for Addis Ababa’s prosperity” motto from 2013 E.C. onwards. The idea was brainstormed among the management team members of the authority to hit more than the 100% target of the annual and monthly plans. The motive was then disseminated to every branch. From the first time the motion commenced, the authority was able to create a competitive ground for each branch and attain a 100+ success rate. In the first half of 2014 E.C, a 31.5 billion birr tax was collected out of the planned 26.5 with a 118% execution rate. The authority is also increasing the involvement of women in its management structure with 8 of the 16 branch managers being women. In total, women account for 54% of the total employees in the Addis Ababa Customs and Revenue Authority. He also lauded that the team spirit and passion of the organization has been top notch in achieving such extended and ambitious plans.

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There have been measures undertaken in the challenging times of the corona pandemic. These include provisions of tax exemptions for pandemic stricken businesses. The head of the authority also mentioned that tax collection and declaration were made difficult since the tax payer was apprehensive to go to branches and fulfill its responsibilities. By taking the necessary COVID-19 protection measures, the authority carried out stock auditing which enabled levying of the appropriate tax. The bureau also made some deductions for institutions that have made contributions to the community in the desperate times of the corona pandemic. The Addis Ababa customs and revenue authority operates in line with the national macro-economic policy of Ethiopia. Collection of tax plays crucial role in realization of a country’s financial dependency on the revenue generated from its own economy. In cases Abyssinia Business Network / ABN / 2022

where this cannot be achieved, a country’s national budget relies on loans and foreign aid. To change such circumstances, rural and urban economic sectors must operate in tandem. Tax collection systems should also be modern, effective and fair, as Mulugeta stressed. To this end, technology based service rendering, elimination of bureaucratic complexities, modernization and reforms of operations should be implemented to better serve the community. Mulugeta rued the past trend where tax exemptions were made during every election terms to appease citizens. Such systems promoted tax evaders to wait anxiously for every term of election for their taxes to be exempted and this discouraged honest and fair tax payers. In contrary to such measures, the authority implemented a system whereby law abiding tax payers can be promoted with special IDs so that they can be given priorities whenever they visit the offices of the authority branches for services. The appreciable efforts of the authority are also beset by challenges. A persisting challenge by the part of the authority is increasing the awareness levels of its customers. Customers must have appropriate set of knowledge and understanding when it comes to taxation systems. The second challenge is the distribution of forged receipts and vouchers. The third is limitations in tax declaration on the part of the tax paying community. When it comes to the authority itself, Mulugeta conceded that it has to pay the right attention to modernize its operation and service rendering system. Ethics and theft are critical issues that need to be dealt with, as the head mentioned. Some of the appreciable opportunities are the recent results recorded. If awareness of tax-payers increase, service rendering on the part of the authority gets better, knowledge base of employees improves, more can be done in collecting the proper amount of taxation. He also added that out of the 10,000 employees required the authority operates with only 6,000 workers. Finance and logistics should also be improved to secure sustainable tax for the city. The second opportunity is the fact that the tax payer is open if administration bodies eliminate the barriers that prevent effective communication. The third good opportunity is that the tax payer was cooperative in the wake of ravaging war. The management’s leadership skill and organizational stand is also another feature to be appreciated. “Any complaints can be forwarded through the ‘7075’ customer handling hotline which handles any mistreatment and suggestions forwarded by clients.” 28

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The Ethiopian tax proclamation has room to serve and make exemptions in cases where businesses fail due to bankruptcy, property damage or become on high risk of failure, as Mulugeta explained. In cases where such failures or risks are reported with apt and sufficient evidence, the authority makes proper exemptions and considerations as per the provisions of the stipulated proclamation. Others come forward fueled with greed and false evidences to get undeserved tax exemptions. The government body takes the necessary steps to identify the validity of such claims in a fair manner. Mulugeta also talked about the service rendering quality of the authority. He highlighted that it is always the message of the customs authority that businesses should declare their earnings in the early stages of the 4 month declaration period. However, most business owners tend to procrastinate doing so in hopes of mobilizing their earnings and make more money in the closing stages of income declaration period. Eventually, when large numbers of business owners try to get tax services in the latter stages, the customs authority’s branches will be forced to serve huge number of clients. Such instances lower service rendering qualities and create grievances on the part of business owners. This in turn leads to incorrect tax levying which again leads to laborious process of appeal. The head mentioned that any complaints can be forwarded through the ‘7075’ customer handling hotline which handles any mistreatment and suggestions forwarded by clients. As Mulugeta said, the aim of the authority is serving as a major finance generating institution of the city of Addis Ababa. Additionally, from the last 2 years on, the authority is working in collaboration with stakeholders to fulfill its social responsibilities. This includes helping low income societies during holidays, identifying disabled individuals and fulfilling their needs. Additionally, in Oromia and Amhara regions, employees of the authority raised aid that was worth 13.5 million birr. In his closing remarks, Mulugeta said that to be effective in taxation systems, the role is not left to the authority and tax payers. Other stakeholders such as the media, national security and auxiliary bodies must be involved. He also highlighted the role of individuals by giving an example where product and service buyers can refuse to purchase items for which no receipts are given. Such cooperation is needed if we are to eliminate theft and tax evasion by enabling the effective operations of customs and revenue authority.

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GREEN CAR INITIATIVE

IN ETHIOPIA By Samuel Teka / ABN/ A green vehicle, clean vehicle, eco-friendly vehicle or environmentally friendly vehicle is a road motor vehicle that produces less harmful impacts to the environment than comparable conventional internal combustion engine vehicles running on gasoline or diesel, or one that uses certain alternative fuels. Presently, in some countries the term is used for any vehicle complying or surpassing the more stringent European emission standards (such as Euro6), or California's zeroemissions vehicle standards (such as ZEV, ULEV, SULEV, PZEV), or the low-carbon fuel standards enacted in several countries. While the fuel economy of new cars improves every year, a green car is a car that is considered even more environmentally friendly than gasoline or dieselpowered vehicles because it is powered by alternative fuel or electricity. Green vehicles represent a commitment to sustainable energy and reduced air pollution. They create fewer greenhouse gas emissions and reduce our dependence on limited fossil fuels, which helps to create energy independence. ABN staffs approached Sitra Ali, CEO Green Tech Ethiopia, and discuss the newly introduced technology that help improve environmental protection endeavors in the country. 30

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Of course, we need support from bank, investment office, regional governments, land management so on, from all stakeholders.”

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SITRA ALI

CEO, Green Tech Ethiopia

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Pursuing initiatives of renewable energy, Green Tech Ethiopia, a private company in the East African country, is igniting brighter hope here with the introduction of electric car to Ethiopian automobile market. The initiative of Green Tech Ethiopia goes beyond shifting from fuel to electric driven vehicles, as the company has come up with wider vision of multiple benefits ranging from promotion of renewable energy technologies to supporting low and middle income segments of the society, and also creating huge job opportunities and hundreds thousands of entrepreneurs in the country. As it launches the business with the electric cars currently imported from the Chinese car manufacturer Dongfeng Motor Corporation, the Company says it has a plan to have its own assembly factory in the near future, even to serve foreign markets in the East African sub region. Green Tech Ethiopia is part of its mother company Green Tech Africa which operates in different countries of African continent in green technologies in general and e-mobility in particular. Green Tech Africa has already established offices in Kenya, Uganda, and Djibouti. It is also in the process of having one in Somalia. Sitra Ali of Green Tech Ethiopia says the electric cars, water purifier, and vending machine of water and oil are the three areas which Green Tech Ethiopia introduces for the Ethiopian market in its engagement with renewable energy technologies, to also contribute to waste management endeavors in the country. 32

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“We have a vision to be one of the five hundred Fortune companies by 2030, 2032; and this can be achieved only when you pursue the path of sustainability with renewable energy.” Green Tech Ethiopia contributes to the country’s endeavors of alleviating fuel dependency syndrome and green development by reduction of carbon emission. As the government has a resilient vision and development plan that addresses environmental pollution caused by carbon emission, Green Tech Ethiopia’s initiative supports the endeavors through introducing renewable energy transport services.

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Dongfeng is one of the four leading car manufacturers globally and has also been working with different multinational motor brands. The Chinese company and Green Tech Ethiopia have forged the partnership based on win-win situation whereby both companies come to be mutually beneficial by taking advantages of the country’s specific conditions in terms of geographical location and population, and economic situation, says Sitra. “We have a vision to be one of the five hundred Fortune companies by 2030, 2032; and this can be achieved only when you pursue the path of sustainability with renewable energy,” says Sitra, stating that the electric car may be considered as luxury now, but it will be a necessity in the future. According to Sitra, Green Tech Ethiopia is considering to supply the electric cars under three categories, including automobiles, mini or mid-bus, and heavy trucks. They all help in addressing environmental pollution, support low and middle income segments of the society and create job opportunities. Abyssinia Business Network / ABN / 2022

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We have a vision to be one of the five hundred Fortune companies by 2030, 2032; and this can be achieved only when you pursue the path of sustainability with renewable energy,”

As the electric cars are rechargeable, Sitra underlines on the need to establish charging stations that cater recharging of batteries depending their respective capacities. “Of course, we need support from bank, investment office, regional governments, land management so on, from all stakeholders.” With the initiative of the rechargeable electric cars, Green Tech Ethiopia aims to create about 200, 000 entrepreneurs by 2030, and also with the introduction and implementation of 40/60 scheme of owning the cars, whereby 60 percent of the finance will be covered by customers, while Green Tech covers the remaining 40 percent. According to Sitra, the company will also work with micro finances with a view to facilitating loan for customers. The Company has already imported 200 electric cars, and has plans to import 10,000 electric cars in the future, Sitra says, noting that those committed customers will definitely be beneficiaries of the initiative. She further says that they have been approaching relevant bodies and institutions such as government

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offices and banks to garner the necessary support and assistances. “Of course, we need support from bank, investment office, regional governments, land management so on, from all stakeholders,” she says indicating that it, of course requires more efforts to convince all and get them on board. As Green Tech comes with an initiative, which is new to majority of the society, even to those within the public sector, and which is being implemented in a country with huge population of more than 100 million, it will have challenges and opportunities. “The opportunities are vast; one is our population of 120 million. It is a good opportunity to serve such a huge population with this kind of technology,” says Sitra.

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On the other hand, it would be more difficult and challenging to influence such huge number of people and get them on board; to bring the level of their understanding of the initiative to that of the Company. Secondly, the support and assistance from the government, and the pace at which the government goes and also the company’s expectation is another issue, says Sitra, emphasizing that there are various external forces which directly or indirectly influence the success of private investment. Furthermore, the political volatility as well as the uncertain reactions from manufacturers of fuel vehicles could also affect the move of Green Tech Ethiopia with its initiative. Abyssinia Business Network / ABN / 2022

CAFOR: Moulding Minds of African Youth

The African Union’s Continental Education Strategy for Africa (CESA) called for the establishment of a Coalition of Stakeholders as a strategy to amplify the case for prioritizing and investing in education and ensuring better coordination and networking on matters related to education in Africa. In support of the calls by the African Union to mobilize stakeholders to support the implementation of CESA, the Coalition on Media and Education for Development Africa Forum (CAFOR) adds value by focusing on the communication dimension, which is its leverage point. CAFOR believes that communication must be at the core of the business of planning education on the continent, ensuring that it is comprehensive and inclusive and that its style and content enhances dialogue in promoting all facets of education. ABN reporter Saamuel Zewdie speaks with Dr. Lawalley Cole, CAFOR Executive Director, emphasizing on the overall objective, mission and the way forward in the African youth and education system. Born in Gambia, educated in Gambia, USA, Tanzania, Togo and France, Dr. Lawalley Cole has worked primarily in The Gambia, Mali, Zambia, and Burundi (for UNICEF as Chief of Education for fifteen years) and for the Association for the Development of Education in Africa (ADEA) at the African Development Bank in Benin, Tunisia and Ethiopia for ten years as Coordinator, Communication for Education and Development. He is currently based in Addis Ababa, Ethiopia, at the African Union Commission Headquarters. 36

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Established in 2017, the Coalition on Media and Education for Development Africa (CAFOR) is an international organization comprising institutions, organizations, experts and individuals who are committed to ensuring that education systems in Africa are relevant to young Africans with newly acquired skills that correspond with what obtains in the labour market within the African continent. CAFOR already has a team of experts numbering more than 50 individuals, and rely a great deal on external experts and its networks of journalists, communicators, education experts and advocates in the field for implementation of activities. “Four years ago in 2018 we mobilized a large number of partners throughout the African continent; we met diplomats, ambassadors, various professional in Africa and America before we started. We had conversation with them, and got a lot of support.” Said the Executive Director. The organization draws on the expertise of various areas related to its work: ministries of education, agriculture, employment, gender and women’s affairs, youth, economy and finance through their communication or information units. Also, media specialized in

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learning and development reporting, communication researchers and trainers, education specialists and development organizations engaged in areas of concern regarding training for youth development. “CAFOR is unique as it was formed by African themselves, and sprung from the spirit of OAU founding fathers such as His Majesty Emperor Hailesellassie, Kwame Nkrumah, Julius Nyerere and Jomo Kenyatta.” Dr. Lawalley Cole said that CAFOR has stemmed from the idea that education for development systems work best in contexts of well-developed partnerships and trust between the multiple actors involved. In addition to the significant classroom partnership between the teacher and learners, CAFOR recognizes that education systems rely on connections and trust between school authorities.

Dr. LAWALLEY COLE Executive Director, CAFOR

“CAFOR is unique as it was formed by African themselves, and sprung from skills that correspond with what obtains in the labor market the spirit of OAU founding fathers such within the African continent. as His Majesty Emperor Hailesellassie, Kwame Nkrumah, Julius Nyerere and Coalition on Media and Education for Development Africa Jomo Kenyatta.” He noted. Forum (CAFOR) hold belief that Africa must invest in letting its youth-the largest population-get quality education, relevant The Coalition on Media and Education for skills and encourage them to work in Africa in order to enhance Development Africa Forum (CAFOR) is peace and security in the continent. first and foremost a forum with various organizations, experts and individuals The Secretariat of the African Youth SDGs Summit announces who are committed to ensuring that a new date for the 4th African Youth SDGs Summit following education systems in Africa are relevant the postponement of the event due to the COVID-19 pandemic. to young Africans with newly acquired The 4th African Youth SDGs Summit will take place on 09-11 Abyssinia Business Network / ABN / 2022

March 2022, at the United Nations Economic Commission for Africa (UNECA) in Addis Ababa, Ethiopia under the theme “Youth Resilience in the Covid-19 era; Pathways to accelerate actions to achieve the SDGs”. The primary reason for forming, joining or building this coalition is to gain maximum influence and potential that an individual organization would otherwise not be able to have. The Coalition will achieve this impression through the following means: CAFOR promotes Communication as a Core Element of Education and Youth Development that will focus on Youth Labour Force Participation with a focus on reform in the agricultural sector in Africa as a start. CAFOR will place Communication at the heart of education and youth development in Africa. Speaking of the notable achievements CAFOR has made, Dr. Lawalley stated that CAFOR and the African Union have signed a Memorandum of Understanding (MOU) in which they agree to work together to enhance the integration of global and continental policy agendas. These include the Sustainable Development Goals (SDGs), Agenda 2063, the Science, Technology and Innovations Strategy for Africa (STISA 2024), the Continental Education Strategy for Africa (CESA 16-25), and the Continental Strategy for Technical and Vocational Education and Training (TVET) into country-level developmental and sectoral strategies for the development of the African continent. 38

It provides a continent-wide platform for exchanging information, experience and practices about new technologies and innovations involving youths, especially in agriculture and other vocations that will help in the curbing of internal and external migration. The Executive Director emphasized the need to keep on advocating the importance of good communication practices among key stakeholders, building capacity to stimulate robust public debate, and promoting policy measures to create an enabling environment for young people to engage in innovation in Africa. Such changes will include access to funding, public access to ICT, skills development and technology infrastructure. Speaking of CAFOR’s flagship projects, The Executive Director mentioned that the organization has already framed ten interventions in order to achieve its mission. These are: Popularization of Continental Education Strategy for Africa (CESA), Quality Education, Innovative skills for Africa’s Youth, Digital Schools Initiative, African Virtual eLibriary, Education in Emergencies & Conflict Situations, Street Children in Africa, Training for journalists and Communication Officers, Promoting CAFOR in member states, and Strengthening Institutional Capacity of CAFOR.

“CAFOR and its networks

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will work closely with the various departments of the African Union Commission to popularize Agenda 2063 at the regional and country levels and will encourage the African Union to work with other African institutions.” Agenda 2063 calls for the African continent to invest in skills, science, technology, engineering, and mathematics so that the African peoples can drive the continent's development agenda. In this respect, said Dr. Lawalley, Agenda 2063 has set up pillars for the priority areas that would execute this vision into a reality. One of the pillars of Agenda 2063 is the need to invest in the peoples of Africa as its most precious resource. These resources include their nutrition and health, their access to shelter, water and sanitation, expanding quality education and strengthening science, technology, innovation and research. The AU contends that STI would design, implement and synchronize continental, regional and national programs to ensure that their strategic orientations and pillars are mutually reinforcing, to achieve the envisaged developmental impact as effectively as possible. CAFOR

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would integrate this strategy in its advocacy and social mobilization programs to promote it at the continental level. Dr. Lawalley stated that CAFOR will function as a broker of ideas and a set up a continent-wide forum for knowledge sharing. The group will provide a platform for exchanging information, experience and practices about new technologies and innovations among experts and government ministries, CSOs, NGOs, the media, youth and communities. Through the forum, CAFOR intends to mobilize and sensitize various experts from different countries for information Dr. Lawalley said, “CAFOR and exchange, creating awareness, and its networks will work closely with the various departments of planning for education sector reforms. the African Union Commission Over the last 10 years, African countries to popularize Agenda 2063 at have focused on addressing access to the regional and country levels basic education as a key milestone in and will encourage the African supporting community development. Union to work with other Through education, they put an emphasis African institutions.” Adding on promoting gender equity and equality, that the African Development not only in remote or rural areas but also Bank (AfDB) and the African in communities and locations where men Capacity Building Foundation (ACBF) are the main ones in this primarily dominated education. regard, to strengthen scientific The gains in improving access to research and innovation through education on the continent have been African networks of excellence.” impressive, but the main challenge is now to improve the quality of education. This has been articulated in several international frameworks (i.e. 2030 Agenda on Sustainable Development Goals, Africa’s Agenda 2063, etc.) from various Pan-African organizations such the African Union Commission, the Sustainable Development Goals Center for Africa (SDGC/A), the Association for the Development of Education in Africa (ADEA), and so forth.

He added that CAFOR’s work requires adequate financial resources to achieve desired outcomes. CAFOR will mobilize most of the resources needed to finance programmatic activities and will institute a financing plan that identifies sources to raise external funds from all development cooperation agencies working in Africa and beyond, including the diaspora.

AFCOR, according to the Executive Director, is owned by its members, combining resources and working together. Moreover, leadership becomes a shared activity, accountability shifts from strictly individual to both individual and collective; the team develops its purpose and mission; problem-solving becomes a way of life, not a parttime exercise. In sum, CAFOR supports the effective implementation of Agenda 2063 and all AU related policy instruments. In this regard, CAFOR would catalyze education and the skills revolution and actively promote science, technology, research and innovation. CAFOR would also support the management of knowledge, human capital capabilities and skills to drive innovations.

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CZECH HYDROIOGIST,

CHECKING GROUND WATER IN ETHIOPIA By ABN Staff Writer A Czech expert of hydrogeology, Jiří Šíma, has been in Ethiopia for more than three decades for professional activities and projects of ground water resource development here in the East African country. Having graduated from Charles University of Czech in 1978, Sima came to Ethiopia in 1984 and joined the Geological Survey of Ethiopia as part of the international development assistance program and cooperation which the then socialist Czech Republic had forged with its one of African counterparts at that time. Šíma has been involved in various water management and environmental projects in Ethiopia, and he has, along with Ethiopian experts, also created a series of hydrogeological maps of the country’s water resources and the maps have been documented with the archives of Geological Survey of Ethiopia. Šíma has now joint ventured for a company called AquaCon Engineering plc. which carries out different projects, including among others, investigation of ground water resources, design of well drills and organizing construction of water supplies schemes. ABN staff, Samuel Zewdie has recently approached Šíma to hear from the horse’s mouth of the robust personal experience in the field as well as his personal and organizational contribution to Ethiopia’s ground water development, achievements, and challenges among other related issues. 40

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The intervention is made at two levels: one is training of technicians who run and work on maintenance of water supply systems, and the second one is experience sharing with students of hydrology, for which his company has close contact with Addis Ababa University, Hawassa University, and Arba Minch University.”

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Jiří Šíma

A Czech expert of hydrogeology

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Speaking of his early formal business engagement after graduation, Šíma says he has started to work with various companies in Czech Republic for ground water resources mapping and development. Having been assigned to Ethiopia in line with international development assistance of Czech to another socialist country in Africa, Šíma, along with local colleagues at the Geological Survey of Ethiopia, started his works of mapping the country’s ground water resources. “At that time, it was not easy to publish maps. We started with color pencils. Nowadays we are working in geographical information systems; it is relatively a big difference; and it was time consuming at that time to produce one map. And this is how we started our cooperation.” says the Czech hydrologist, reminding that the cooperation was, following political changes in both countries, discontinued for some years and it resumed in 2001 when Czech Republic launched development assistance program again. “This is very important component of our work, and this is very important for country like Ethiopia to find water; not to lose money by nonsense drilling; drilling from an area which is not promising. This is one of our achievements with our Ethiopian colleagues,” The expert has been involved in ground water resource mapping program, which has covered the whole country and been implemented for a couple of decades to have pieces of maps produced, and which, according to Šíma, has helped the success of well drillings that have been carried out later on. He stated that some 40 years ago the success with well drillings was only about 40 percent as there was no background information on ways of finding the resource and other related issues such as the depth and yield of water points. After the maps have been published, the successes with well drilling has been raised to 70 and 80 percent. “This is very important component of our work, and this is very important for country 42

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“There is lack of technicians working on maintenance, particularly in rural areas; we need more and more technicians to working on that. Relatively, we develop good resource, good groups of people working on direct development in drilling and everything. But, what we need more is the technicians running the system,”

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like Ethiopia to find water; not to lose money by nonsense drilling; drilling from an area which is not promising. This is one of our achievements with our Ethiopian colleagues,” he says. With regard to water development and management, the expert says, there are two aspects of focus: one is to find water with good quality and good yield for the provision of the utility to households, industry and agriculture. The second aspect is to maintain the quality of the water towards ensuring the provision of safe drinking water to people. On another engagement, he says they have been involved in a four year initiative carried out in partnership with the Agriculture Transformation Agency, whereby shallow ground water projects were implemented for irrigation of small scale farming of crops, vegetables and fruits. “This is how we are working and how we would like to contribute for development of Ethiopian industry, Ethiopian agriculture in the future,” he says. Speaking of his company, AqauCon, which has been joint ventured among three partners, two Czechs and one local partner, Šíma says the joint venture has been realized after they have well recognized Ethiopia and its potential in the sector. The company has been working on different projects, starting from ground water resources investigation, design of wells drills, and organizing construction of water supplies schemes. “This is good for us as well as for Ethiopian partners because we can share relatively a little bit different experiences from European environment and African environment,” says Šíma, also noting that joint efforts on such projects would be successful as they are likely financed by development agencies and partners, including WB, UNICEF and Czech Development Agency, among others. Abyssinia Business Network / ABN / 2022

As to challenges he has come across in Ethiopia, the Czech geologist states that working in remote areas like Somali region has been challenging in terms of distance and high temperature, especially for people who are from outside the region. In addition, power cut and internet problem are among the minor challenges. “The intervention is made at two levels: one is training of technicians who run and work on maintenance of water supply systems, and the second one is experience sharing with students of hydrology, for which his company has close contact with Addis Ababa University, Hawassa University, and Arba Minch University.” Asked about issues related to realizing full coverage of safe drinking water across the country, Šíma stated that discussions have been underway with regions and postgraduate students of Addis Ababa University on ways of ensuring safe drinking water coverage in the country by applying good methods of finding good water, good yield and good quality as well as by addressing the problem of local knowledge and management of water resources. He stated that shortage of well trained technicians for maintenance and smooth running of water supply systems is a critical problem in the country. Šíma has also reiterated that there is shortage of trained technicians, particularly in rural areas, as they leave their jobs of running and maintenance of water supply systems for other activities such as working garage to have better incomes. As scattered settlement of inhabitants is one of the factors that affect water supply efforts, Šíma noted that his company and its partners are preparing for integrated development plans which involve integrated development activities in the areas of urban planning, land use as well as management of water and other natural resources. Responding to a question about the contribution made in terms of human power development in the 44

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sector, Šíma said that the intervention is made at two levels: one is training of technicians who run and work on maintenance of water supply systems, and the second one is experience sharing with students of hydrology, for which his company has close contact with Addis Ababa University, Hawassa University, and Arba Minch University. He also said further cooperation and joint efforts are important also in other related technologies such as pump manufacturing, whereby Czechs could share their knowledge and experience. Appreciating Ethiopia’s policy and commitment to the development of water resources, the Czech geologist has underlined the need to ensure that trained technicians remain with their normal activities of running and maintenance of water supply systems. He has also stated that strong management of water supply system is required once the projects have been realized as they normally run relatively for longer time of about 30 years. “There is lack of technicians working on maintenance, particularly in rural areas; we need more and more technicians to working on that. Relatively, we develop good resource, good groups of people working on direct development in drilling and everything. But, what we need more is the technicians running the system,” says Šíma. Abyssinia Business Network / ABN / 2022

FILMMAKING ASSOCIATION:

BACKBONE of THE FILM INDUSTRY'S DEVELOPMENT

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Since the inception of the film policy some three years back, the government has paid little attention to it. The first step should have been to establish rules, regulations, and financial structures. It could have benefited the industry's growth slightly.

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BINYAM ALEMAYEHU

president of Ethiopian Filmmakers Association (EFIMA)

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The film industry is both international and global in nature. There are various filmmaking associations all over the world that are attempting to help the film industry. In terms of both production and distribution, the United States dominates the industry. The Motion Picture Association (MPA) is an American association that represents the country's five main film studios, as well as Netflix, a video streaming service. Founded in 1922, the Motion Picture Association of America (MPAA) was previously known as the Motion Picture Producers and Distributors of America (MPPDA). The organization's initial goal was to ensure the viability of the American film industry. The MPA also created criteria for film content, leading to the development of the Motion Picture Production Code in 1930. The Motion Picture Association represents the interests of six international film producer and distributor companies. To that end, they promote and protect these companies' intellectual property rights, as well as run public awareness campaigns to educate moviegoers all over the world about the importance of content protection. The organizations represent the Motion Picture Association's members. They have a global presence, with headquarters in Los Angeles and Washington, D.C., as well as regional offices in Europe, Asia Pacific, Latin America, and Canada. All of the hard work and pursuit of excellence in the industry is the reason why America is at the forefront of the film industry. “Ethiopia has a socio-historical and natural environment that is conducive to filmmaking, thus there is a lot of untapped possibilities in the sector.” 48

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“ Ethiopia has a sociohistorical and natural environment that is conducive to filmmaking, thus there is a lot of untapped possibilities in the sector.”

When it comes to Ethiopia, the film industry is constantly striving for growth and improvement. The Ethiopian Filmmakers Association was established in 2001 E.C, and established with the goal of preserving film producers' rights and needs, as well as improving Ethiopia's film industries. Serawit Fikre, Tewodros Teshome, Thomas Getachew, Aster Bedane, and other professionals founded the association. Binyam Alemayehu is currently serving as president of Ethiopian Filmmakers Association (EFIMA). He has a background in film production and has approximately ten years of experience in the film industry. He has taken a number of film industry training courses. He was one of the participants in the association's filmmaking training, which was primarily aimed at building the capacity of film directors and actors. Many core works have been completed since the association's inception. One of the major projects completed is Ethiopian Cultural Policy Approval. Just before three years, activities were undertaken to make Ethiopian film policy a reality in addition to other relevant works, such as ensuring copyright, royalty fees, and skill development trainings and workshops. The association also works with the cinemas to put the film industry in a better place. Copyright has been one of the biggest issues in the industry. The Ethiopian Filmmakers Association has been collaborating with Scientific Revolution Earth to address this issue (SRE). To address the issue of copyright, work has been done by

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The government must govern the film industry in proper law and order for it to be in a better place.”

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building software and distributing the system in all cinemas across the country. Ethiopia has a socio-historical and natural environment that is conducive to filmmaking, thus there are a lot of untapped possibilities in the sector. However, he says, “I do not believe the Ethiopian film industry is heading in the right path.” “Since the inception of the film policy some three years back, the government has paid little attention to it. The first step should have been to establish rules, regulations, and financial structures. It could have benefited the industry's growth slightly.” Many Ethiopian film sectors have been known to be disregarded by the government and have not been able to expand as they should. This has an even greater influence on the film business. Ethiopia's Ministry of Culture and Tourism must pay close attention to this industry as a government representative. It must play its role in supporting the film industry. Since the inception of the film policy some three years back, the government has paid little attention to it. The first step should have been to establish rules, regulations, and financial structures. It could have benefited the industry's growth slightly. The Ethiopian Filmmaking Association has been closely working with the Ministry of Peace; however, no progress has been made in terms of policy implementation.

Undoubtedly, the film industry has immense potential to contribute significantly to the growth of the national economy. The film industry is made up of a diverse range of professionals who play a variety of roles. A single film's crew can number up to 100 people. Each having different tasks. According to a recent survey, 120 movies are produced in Ethiopia each year if cinemas are considered. If the perspective is viewed from a point other than the cinema platform, the figure may even double. This demonstrates how many professionals are involved in the business. It thus shows that the film business can have a significant impact on the economy. “The government must govern the film industry in proper law and order for it to be in a better place.” Says Mr. Binyam. The fundamental aspect that can be done to avoid a lack of progress in the sector's development is for the government to shift its emphasis to film policy. By implementing the policy, it will be able to solve at least 75% of the issue. The collaborative work of the film professionals themselves is another option for tackling the issue. The Ethiopian Film Makers Association has a discipline framework in place for its members. Membership in the group benefits the film

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business in a variety of ways. When it comes to the discipline of the job in the sector, it may be resolved if concerned experts join the association and work together to overcome various challenges and move the film industry ahead. Here it’s worth mentioning that COVID 19 pandemic has its own impact on the film industry and the entertainment industry in general. There was a time movies were stolen and disseminated on the internet, resulting in financial loss and moral deterioration for filmmakers. This is due to certain anarchistic persons in the area of the cinema who did not obey the law. The suspected offenders are now being questioned by the law, and they are accepting responsibility for their misconduct. This has been a significant accomplishment in terms of addressing the issue of theft in the film industry.

“There is a big project to be launched with in two months. ‘Arkwod’, is the name of the project. It is a country level project which will take a major role in the film industry.” says the

president. The collaborative work of various professionals in the industry will not only help the film industry to improve, but will also allow it to enter the international market. The Ethiopian film has the potential to find an audience throughout Africa and other countries.

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Located on the Southern tip of Awash National Park, the newly built Kuriftu Resorts Awash offers one of a kind 10 room boutique resort suspended over a waterfall, places guests at an elevation that is unique to its property. With views of crocodiles on the river bank, refreshing mist from the edge of the falls paired with unmatched scenery, it gives visitors the ultimate experience and pleasure. The rooms of this new fancy establishment are meticulously designed to match the natural aesthetic of the landscape with earth tones and balcony access to overlook the waterfall. The 10 rooms consist of Premier Rooms (7), Junior Suite (1), Executive Suite (1) and the Presidential Suite (1) specifically designed to match and even exceed the imagination of our beloved and revered customers. Kuriftu resorts Awash has a splendid restaurant/bar service. Designed to highlight the unparalleled and spectacular view of the glorious Awash national park, the Restaurant & Bar is decorated with natural light flooding the space with colorful accents, stone structures and brick elements, creating an organic vibrancy for its guests to absorb. The bar has a wide array of beverages and products to select from, satisfying its customers to the fullest. From a wide selection of international wines to signature cocktails and a set menu made-up of locally sourced ingredients, its dining experience fully encompasses guests’ needs above and beyond their wildest expectations. Kuriftu Awash also boasts a satisfying dipping pool accompanied by a bar and grill corner. The resort is pleased and honored to present customers with its first dipping pool experience paired with a Bar & Grill on an elevated platform that overlooks the beautiful landscape of Awash river waterfall washing away against a rugged rocky terrain. It is by far and farthest the perfect destination for romantic, personal and family getaways with picture - perfect views from sunrise to sunset. Its Spa rooms offer unique massage experience located on the banks of the Awash River where guests will have the opportunity to relax to the sound of the waterfall while receiving a well-deserved and relaxing massage. Kuriftu resorts Awash invites guests from near and far to come and make the most of their holidays with the exceptional service and amenities of this spectacular vacation destination.

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Smart City: Overview As cities get smarter, they are becoming more livable and more responsive and today we are seeing only a preview of what technology could eventually do in the urban environment. Until recently, city leaders thought of smart technologies primarily as tools for becoming more efficient behind the scenes. Now technology is being injected more directly into the lives of residents. Smartphones have become the keys to the city, putting instant information about transit, traffic, health services, safety alerts, and community news into millions of hands. After a decade of trial and error, municipal leaders are realizing that smart-city strategies start with people, not technology. “Smartness” is not just about installing digital interfaces in traditional infrastructure or streamlining city operations. It is also about using technology and data purposefully to make better decisions and deliver a better quality of life. Quality of life has many dimensions, from the air residents breathe to how safe they feel walking the 54

streets. The latest report from the McKinsey Global Institute (MGI), Smart cities: Digital solutions for a more livable future, analyzes how dozens of digital applications address these kinds of practical and very human concerns. It finds that cities can use smart technologies to improve some key qualityof-life indicators by 10 to 30 percent—numbers that translate into lives saved, fewer crime incidents, shorter commutes, a reduced health burden, and carbon emissions averted. What makes a city smart? Smart cities put data and digital technology to work to make better decisions and improve the quality of life. More comprehensive, real-time data gives agencies the ability to watch events as they unfold, understand how demand patterns are changing, and respond with faster and lower-cost solutions. Three layers work together to make a smart city hum. First is the technology base, which includes a critical mass of smartphones and sensors connected by highspeed communication networks.

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The second layer consists of specific applications. Translating raw data into alerts, insight, and action requires the right tools, and this is where technology providers and app developers come in. The third layer is usage by cities, companies, and the public. Many applications succeed only if they are widely adopted and manage to change behavior. They encourage people to use transit during off-hours, to change routes, to use less energy and water and to do so at different times of day, and to reduce strains on the healthcare system through preventive self-care. Smart-city technologies have substantial unrealized potential to improve the urban quality of life MGI assessed how smart-city applications could affect various quality-of-life dimensions: safety, time and convenience, health, environmental quality, social connectedness and civic participation, jobs, and the cost of living (see interactive). The wide range of outcomes reflects the fact that applications perform differently from city to city, depending on factors such as legacy infrastructure systems and on baseline starting points.

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Applications can help cities fight crime and improve other aspects of public safety. Deploying a range of applications to their maximum effect could potentially reduce fatalities (from homicide, road traffic, and fires) by 8 to 10 percent. In a high-crime city with a population of five million, this could mean saving up to 300 lives each year. Incidents of assault, robbery, burglary, and auto theft could be lowered by 30 to 40 percent. On top of these metrics are the incalculable benefits of giving residents freedom of movement and peace of mind. Abyssinia Business Network / ABN / 2022

Technology is not a quick fix for crime, but agencies can use data to deploy scarce resources and personnel more effectively. Real-time crime mapping, for instance, utilizes statistical analysis to highlight patterns, while predictive policing goes a step further, anticipating crime to head off incidents before they occur. When incidents do occur, applications such as gunshot detection, smart surveillance, and home security systems can accelerate law-enforcement response. But data-driven policing has to be deployed in a way that protects civil liberties and avoids criminalizing specific neighborhoods or demographic groups. Seconds count when lives are at stake, making speed critical for first responders in getting to the scene of emergencies. Smart systems can optimize call centers and field operations, while traffic-signal preemption gives emergency vehicles a clear driving path. These types of applications could cut emergency response times by 20 to 35 percent. A city with an already low response time of eight minutes could shave off almost two minutes. A city starting with an average response time of 50 minutes might be able to trim that by more than 17 minutes. Smart-city technologies can make daily commutes faster and less frustrating Tens of millions of people in cities worldwide 56

begin and end every workday fuming in traffic or piling into overcrowded buses and trains. Improving the daily commute is critical to quality of life. By 2025, cities that deploy smartmobility applications have the potential to cut commuting times by 15 to 20 percent on average, with some people enjoying even larger reductions. The potential associated with each application is highly variable, depending on each city’s density, existing transit infrastructure, and commuting patterns. In a dense city with extensive transit, smart technologies could save the average commuter almost 15 minutes a day. In a developing city with more grueling commutes, the improvement might be 20 to 30 minutes every day. In general, cities with extensive, well-used transit systems benefit from applications that streamline the experience for riders. Using digital signage or mobile apps to deliver real-time information about delays enables riders to adjust their routes on the fly. Installing information technology sensors on existing physical infrastructure can help crews fix problems before they turn into breakdowns and delays. Applications that ease road congestion are more effective in cities where driving is prevalent or where buses are the primary mode of transit. Intelligent syncing of traffic signals has the potential to

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reduce average commutes by more than 5 percent in developing cities where most people travel by bus. Real-time navigation alerts drivers to delays and helps them choose the fastest route. Smart-parking apps point them directly to available spots, eliminating time spent fruitlessly circling city blocks. Cities can be catalysts for better health The sheer density of cities makes them critical although currently underutilized platforms for addressing health. Recognizing that the role of technology in healthcare is broad and evolving by the day, we analyze only digital applications that offer cities room to play a role. We quantify their potential impact on disabilityadjusted life years (DALYs), the primary metric used by the World Health Organization to convey the global disease burden, reflecting not only years of life lost to early death but also productive and healthy life lost to disability or incapacity. If cities deploy the applications included in our analyses to their fullest effect, we see the potential to reduce DALYs by 8 to 15 percent. Applications that help prevent, treat, and monitor chronic conditions, such as diabetes or cardiovascular disease, could make the biggest difference in the developed world. Remote-patient-monitoring systems have the potential to reduce the health burden in highincome cities by more than 4 percent. These systems use digital devices to take vital readings, then transmit them securely to doctors in

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another location for assessment. This data can alert both patient and doctor when early intervention is needed, heading off complications and hospitalizations. Cities can use data and analytics to identify demographic groups with elevated risk profiles and target interventions more precisely. So-called mHealth interventions can send out lifesaving messages about vaccinations, sanitation, safe sex, and adherence to antiretroviral therapy regimens. In low-income cities with high infant-mortality rates, databased interventions focused on maternal and child health alone could reduce DALYs by more than 5 percent. Another 5 percent reduction is possible if developing cities use infectious-disease surveillance systems to stay a step ahead of fast-moving epidemics. Telemedicine, which provides clinical consultations by videoconference, can also be lifesaving in low-income cities with doctor shortages. Smart cities can deliver a cleaner and more sustainable environment. As urbanization, industrialization, and consumption grow, environmental pressures multiply. Applications such as building-automation systems, dynamic electricity pricing, and some mobility applications could combine to cut emissions by 10 to 15 percent. Water-consumption tracking, which pairs advanced metering with digital feedback messages, can nudge people toward conservation and reduce consumption by 15 percent in cities where residential water usage is high. In many parts of the developing world, the biggest source of water waste is leakage from pipes.

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Deploying sensors and analytics can cut those losses by up to 25 percent. Applications such as payas-you-throw digital tracking can reduce the volume of solid waste per capita by 10 to 20 percent. Overall, cities can save 25 to 80 liters of water per person each day and reduce unrecycled solid waste by 30 to 130 kilograms per person annually. Air-quality sensors do not automatically address the causes of pollution, but they can identify the sources and provide the basis for further action. Beijing reduced deadly airborne pollutants by roughly 20 percent in less than a year by closely tracking the sources of pollution and regulating traffic and construction accordingly. Sharing real-time air-quality information with the public via smartphone apps enables individuals to take protective measures. This can reduce negative health effects by 3 to 15 percent, depending on current pollution levels. Smart cities can create a new type of digital urban commons and enhance social connectedness. Community is hard to quantify, but MGI surveyed urban residents to determine if digital channels for communicating with local officials as well as digital platforms that facilitate real-world interactions (such as Meetup and Nextdoor) can have an impact. Our analysis suggests that using these types of applications could nearly double the share of residents who feel connected to the local community, Abyssinia Business Network / ABN / 2022

and nearly triple the share who feel connected to local government. Establishing channels for two-way communication between the public and local agencies could make city governments more responsive. Many city agencies maintain an active presence on social networks, and others have developed their own interactive citizen apps. In addition to disseminating information, these channels create vehicles for residents to report concerns, collect data, or weigh in on planning issues. Paris has implemented a participatory budget, inviting anyone to post project ideas and then holding online votes to decide which ones merit funding. Becoming a smart city is not a strategy for job creation, but smart solutions can make local labor markets more efficient and slightly lower the cost of living. Many local officials want to know if becoming a smart city will lead to an infusion of high-paying tech jobs or accelerate a wave of automation. Our analysis finds a slightly positive net impact on formal employment. Smart technologies will directly eliminate some jobs (such as administrative and field jobs in city government) while creating others (such as maintenance, driving roles, and temporary installation jobs). E-career centers can have a modest positive impact by creating more efficient mechanisms for hiring and drawing more unemployed and inactive people into the workforce. Data-driven formal education and online retraining programs can enhance a city’s pool of skills. Digitizing government functions 58

such as business licensing, permitting, and tax filing can free local enterprises from red tape, contributing to a more entrepreneurial business climate. Many of the world’s most dynamic and desirable cities have serious housing shortages, driving up rents and home prices. Expanding the supply of housing can bring down those costs. In many places, bureaucracy bogs down land acquisition, environmental studies, design approvals, and permitting. Digitizing these processes can remove risks and delays, encouraging more construction. In addition, most cities have a surprising amount of land sitting idle that could be suitable for infill housing. Creating open-source cadastral databases can help to identify land parcels for development. Smart applications produce savings in other areas, such as encouraging more efficient usage of utilities and the healthcare system. Products such as home-security systems, personalalert devices, and lifestyle wearables involve consumer purchases, but they offer value that many are willing to pay for. Mobility applications offer new value as well, although e-hailing may encourage people to take more rides than they once did. However, e-hailing and other sharing applications make it possible for some people to forgo private vehicle ownership. MGI estimates that the average person could save as much as 3 percent on current annual expenditures. A look at current deployment in 50 cities around the world shows that even the most advanced still have a long way to go MGI took a snapshot of deployment in 50 cities around the world, not to

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crown the world’s smartest city but to show the full sweep of activity under way around the globe. This includes assessment of each city’s technology base, its current application rollout, and public adoption. Each city’s technology base looked at the extent of sensors and devices, the quality of communication networks, and the presence of open data portals. Among the most advanced are Amsterdam, New York, Seoul, Singapore, and Stockholm but even these front-runners are only about two-thirds of the way toward what constitutes a fully comprehensive technology base today. In general, cities across China, East Asia, Europe, and North America have relatively strong tech bases, as do select cities in the Middle East. But those in Africa, India, and Latin America lag behind, particularly in installing the sensor layer, the most capital-intensive element. We gauged each city’s progress in implementation using a checklist of current smart applications. Mobility has been a top priority for most cities, but those places with the highest number of applications implemented overall London, Los Angeles, New York, Seoul, Shenzhen, and Singapore have branched out into multiple domains. Some cities have not yet implemented the applications with the greatest potential to address some of their priority issues.

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Smart cities change the economics of infrastructure and create room for partnerships and private-sector participation.

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Smart-city technologies help cities get more out of their assets, whether they have extensive legacy systems or are building from scratch. There is no getting around the need to invest in physical assets and maintenance, but smart technologies can add new capabilities as core components are upgraded. Infrastructure investment once locked cities into capital-intensive and extremely long-term plans. Now, using the right combination of traditional construction and smart solutions, they can respond more dynamically to how demand is changing. If population growth surges in a far-flung neighborhood, adding a new subway or bus line with the accompanying fleet expansion may take years. By contrast, a privately operated ondemand minibus service could be up and running much faster. In a nutshell, some cities are starting their transformations with inherent advantages such as wealth, density, and existing hightech industries. But even places that lack these ingredients can set themselves apart with vision, good management, a willingness to break with conventional ways of doing things, and a relentless commitment to meeting the needs of residents. There are many blank canvases for the private sector, not for profits, and technologists to fill and above all, individuals should be empowered to shape the future of the cities they call home

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Abyssinia Business Network /ABN/ March 2022 Building the Future

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Abyssinia Business Network /ABN/ March 2022 Building the Future