3 rd Year / #28 / February 2021
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Abiy Ahmed /PhD/ Prime Minister of Ethiopia
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CONTENTS Ethiopia’s Candidate for AU Commissioner of Education, Science, Technology and Innovation / ESTI / Professor Hirut Woldemariam
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Pioneering Unique Trend in Ethiopia
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Gebreselassie Sefer
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BGI Ethiopia
Pioneering Brewery
Daryl Wilson
Coca-Cola:
Keeps Refreshing
42 EASY TECNOLOGIES
Unlocking
Free Trade
Area
Kebour Ghenna
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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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istory is chock-full of women who made incredible contributions to society, yet are not much-trumpeted and appreciated by the public. From pioneers and political dissidents to inventors and astrophysicists, the remarkable and magnificent deeds of these historical female figures deserve appreciation on must-read lists. One of the veterans, observant, quick-witted and tenacious Ethiopian scholars is Professor Hirut Woldemariam, who has served the government and people of Ethiopia by assuming four Ministerial positions so far. She was also the first female Vice President of Addis Ababa University. Professor Hirut worked as an instructor and researcher in the same university for more than 25 years. A mother of three, Hirut now appears to be Ethiopia’s Candidate for AU Commissioner of Education, Science, Technology, and Innovation (ESTI). She tells her professional and political path to ABN. 10
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PROFESSOR
HIRUT WOLDEMARIAM
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ABN .We heard that you have broken a number of glass ceilings and achieved numerous “firsts” in your carrier development and leadership experiences so far. Tell us about that? Prof Hirut. I was the first female Professor in the Colleges of Social Science and Humanities, and in the academic leadership I got the opportunity to serve as the first female Department Chair of Linguistics and Philology, the first female Associate Vice President of the Academic Affairs, the first female Vice President of Addis Ababa University. As you know our higher education institutions have been male dominated, and I was lucky enough to get exceptional chance to exercise 12
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leadership starting from the smallest academic unit, department, to a Vice President of Addis Ababa University. ABN. How did you move into the high level leadership at a ministerial level? You have also taken up four ministerial portfolios so far? Prof Hirut. Served in four Ministerial positions Minister of Culture and Tourism Minister of Labor and Social Affairs Minister of Science and Higher Education (Founding Minister) Currently serving as Minister - Social
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Sector Advisor to Prime Minister Abiy Ahmed I believe that serving in the academia at different levels and positions has uniquely prepared me for the position. ABN. What do you think you could fit into this post? Prof Hirut. I think I am well qualified, I think I have rich experience in the portfolio, in academia, and high level leadership positions both in the higher education institution, as well as at the ministerial level. I believe that I have the collection of qualities that AU ESTI needs. I was in the academics serving at Addis
Ababa University for about 25 years. As a Scientist published about three dozens of peer reviewed articles in international journals, that enabled me to be a full professor and a duly inducted member of Ethiopian Science Academy. Also, I have been awarded the Alexander Humboldt Senior Scientist Award. As a change maker, I have initiated and implemented important reform initiatives in the Ethiopia’s higher education to improve quality, relevance and inclusiveness in Higher Education and Science. Besides, when I was at Addis Ababa University, I was an active member of the Ethiopian Public Diplomacy Group. Abyssinia Business Nework የካቲት
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Professor Hirut Woldemariam
Minister - Social Sector Advisor to Prime Minister Abiy Ahmed 12
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Besides, I have a track record of being a quick learner, change maker, passionate and dedicated to my goal, and I am someone who can work under pressure. Can you tell us what motivated you to run for this position, Education, Science, Technology and Innovation Commission Commissioner position at the African Union? I believe that, there is no greater calling than serving the advancement of Africa in its aim to become peaceful, prosperous, integrated, and globally influential continent. I believe that the Africa we want can realized through quality, relevant, and inclusive education. It comes through advancement of Science, Technology and Innovation. This is the way to realize “the Africa We Want”. ABN. What do you think Africa’s opportunities and challenges, and what needs to be done to advance the continent from the perspective of Education, Science, Technology and Innovation? Prof Hirut. Africa has the largest and youngest population on the planet. Africa is endowed with ample natural resources. Our continent holds strategic geopolitical positions in the world! However, our economic growth is unstable because it is not driven by technology. our day to day lives are still manual in most cases. Our youth suffer from Migration, Conflict, violence, and joblessness. This is my regret. Because. our Africa deserves a better place in the world, and we Africans deserve a much higher quality of life. I believe that human capital development is the engine of economic development and prosperity. Science Technology and Innovation is essential to ensure sustainable Growth. ABN.How do you see the role of the AU ESTI, which you are aspiring to lead? Prof Hirut. It is a key center for transforming the continent into the global powerhouse of the future, as aspired in Africa’s Agenda 2063.This commission is the one that makes the way for our continent’s future. The Africa we want, I mean, the peaceful, integrated, prosperous, and globally influential only be achieved Abyssinia Business Nework የካቲት
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by working on the youth. We have to well educate our children and advance technology and innovation in order to improve the quality of lives of our society, solve African problem for Africans by Africans, ensure sustainable growth, and advance our economy. The youth need to have the right mind-set, relevant skills and competency. Besides, they should build the identity of Pan-Africanism. We have to inculcate the values and ideals of Pan-Africanism in our education systems. ABN. What is your Vision? Prof Hirut. My vision is to enable inclusive, relevant, high-quality education and foster Africa-centric science and a deep culture of innovation that will unleash the potential of Africa’s youth for the continent’s rightful and timely advancement as aspired in Agenda 2063. We have to make a paradigm shift to do things differently to unlock Africa’s indigenous knowledge of our ancestors; to make the best out of Africa’s talent, wisdoms, vibrant energy of the youth. We have to invest on the youth, on the next generation through Africa-relevant quality education, advancement of science, technology and innovation. Otherwise, we cannot ensure to have a prosperous and globally influential continent that we always aspire to see. ABN. What were your legacy at the Ministry of Science and Higher Education that can make you the best candidate for the ESTI Commissioner post? 16
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• I was a founding minister of the Science and Higher Education Ministry who have established it from the ground up, and leading 46 public universities, 250 private higher education institutions, 1,300 TVETinstitutes, and nurturing Science and Research. • Provided proactive and exemplary leadership in the development of a new curriculum for Higher Education with common courses on cutting-edge global concepts and skills such as critical thinking, emerging technologies, entrepreneurship, inclusiveness, and ethics, among others, to contribute to the advancement of students’ scientific outlook, critical thinking power, creativity, entrepreneurship, and leadership skills. The new curriculum is already implemented. • Beyond rhetoric, I have acted on gender equity in the sector that has resulted in increased female students and female leaders’ participation in Higher Education. This happened by amending the leadership recruitment directive, creating a network of women in academia, capacity building for women leaders, etc • Organizing the diaspora scholars as Advisory Council to support the various reform initiatives in the sector, and other major activates was also my legacy. • Initiated new regulation for Public-Private Partnership, university-industry linkages, and internationalization in the Ethiopian Higher Education and TVET sectors.
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• Introduced digital literacy program as a community service in the public universities was also my initiative. All these achievements happened in two years and while we were challenged by student unrest in our universities and the COVID 19 Pandemic. I believe my journey gave me even more endurance and strength. ABN. What is your family like? Prof Hirut. I am a proud mother of three vibrant children and a wife. My husband, my brother, my sister and now my daughter who has just graduated with Medical Degree from AAU are all physicians. My parents were my pillars of strength. My father who was a graduate of AAU and high school teacher of African Geography and History was telling me about the power of education in an individual’s life. My mother was a spiritual, and always optimistic strong woman who always put a smile on her face no matter what the circumstances were, gave me the strength and inspiration to be fearless to face any challenge in life and keep on going forward. ABN. What are your key priorities to embark on if you get elected? • Education, research, and innovation aligned with longterm socioeconomic objectives
Education, Research, and Innovation; Revitalizing African Universities, etc. Have you participated in the regional, continental and Global INITIATIVES in the portfolio? Yes, to mention a few, I was participating in the
Professor Hirut Woldemariam of the continent in line with the objectives of STISA-2024.
that includes communities, private sector and industry.
• A Pan-African education and training accreditation and qualification system through harmonized guidelines and standards
• Curriculum relevant for the 21st century job market- that includes critical thinking, creativity, innovation, cutting-edge technology, communication, and global citizenship values.
• Establishing specialized global centers of excellences in the comparative advantages Africa has. • Recognizing an ecosystem framework of education
• Ensuring Gender and Social Equity in Education, Science, Technology and Innovation I will work towards inclusive,equitable and quality education; integration of
5th PASET FORUM, Partnerships with fellow African Ministers of Higher Education to prepare African youth for the future, the 4th Industrial Revolution and Digital Economy (Kigali, Rwanda, May 20-22, 2019) East African Skills for Transformation and Regional Integration Project (EASTRIP) in Ethiopia, which is aimed at improving quality TVET programs and supporting regional integration UNITED NATIONS TECHNOLGY BANK FOR LEAST DEVVELOPED COUNTRIES STRENGTHENING NATIONAL ACADEMIS OF SCIENCE IN THE LDCS IN SUPPORT OF THE AGENDA 2063 AGENDA (Kampala, Uganda Sep 2-3, 2019) International Forum for Inclusive and Equity Education (Cali, Colombia, 11-13 September 2019) World Education Forum (London January, 2019) BIE (Balanced and Inclusive Education, Djibouti, 27-29 January 2020 Those platforms gave me the opportunity to have fruitful discussions with fellow Africans on the various opportunities and challenges our continent has especially in the education, science, technology and innovation sectors.
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Exclusive
Coca-Cola: Keeps Refreshing By Aklile Tsige
Did you know? The first servings of Coca Cola were sold for 5 cents per glass. During the first year, sales averaged a modest nine servings per day in Atlanta. Every day, people all over the world drink 1.9 billion servings of Coca-Cola between them. It is, by some measures, the most widely distributed product in history. The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200 countries and territories. In addition to the company’s Coca-Cola brand, its portfolio includes AdeS, Ayataka, Costa, Dasani, Del Valle, Fanta, Georgia, Gold Peak, Honest, innocent, Minute Maid, PowerAde, Simply, smart water, Sprite, vitamin water and ZICO. The brand’s humble, up-by-the-bootstraps origin story, its history of innovation in both marketing and technology, and its close association with American men in uniform have made Coca-Cola virtually synonymous with America’s image overseas. Coca-Cola has been operational in Ethiopia since 1959 opening three factories in three parts of the country: Addis Ababa, Dire Dawa and Bahirdar. ABN Editor-in-Chief Aklile Tsige sat down with Daryl Wilson, Managing Director Coca- Cola Beverages Africa (CCBA) Ethiopia to ask some questions on the company’s overall operation while compiling reports from other sources, including Company’s Communications Department. 18
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Abyssinia Business Network/ABN/ crew has been to the first Coca Cola factory in the capital Addis Ababa in amidst of global pandemic. We witness the promising and obligatory measure being taken against the global health challenge corona virus aka Covid19. A health professional with a thermometer diagnosing, and another person providing sanitizer to three of us: the reporter, cameraman and the driver. We felt very safe to enter into a small meeting hall we conducted an exclusive interview with Daryl Wilson.
Photo by Sol Image
“It’s really a tragedy to what’s happened to the world. For a couple of months we, as a company, have been seriously taking the responsibility to prevent our employees from being infected with the virus, COVID 19.” Said the Managing Director, adding that the company is taking precaution through availing sufficient sanitization and testing materials and equipment.
Daryl Wilson
Managing Director Coca- Cola Beverages Africa (CCBA) Ethiopia
partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca Cola” as well History has it that Coca-Cola as designing the trademarked, began in 1886 when the curiosity distinct script, still used today. of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a Prior to his death in 1888, just distinctive tasting soft drink that two years after creating what was could be sold at soda fountains. He to become the world’s #1-selling created a flavored syrup, took it to sparkling beverage, Dr. Pemberton his neighborhood pharmacy, where sold portions of his business to it was mixed with carbonated water various parties, with the majority and deemed “excellent” by those of the interest sold to Atlanta who sampled it. Dr. Pemberton’s businessman, As a G. Candler.
Throwback
Under Mr. Candler’s leadership, distribution of Coca Cola expanded to soda fountains beyond Atlanta. In 1894, impressed by the growing demand for Coca Cola and the desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain, becoming the first to put Coca Cola in bottles. Among the biggest challenges for early bottlers, were imitations of
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the beverage by competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at the time. The bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and in 1916, the bottlers approved the unique contour bottle. The new Coca Cola bottle was so distinctive it could be recognized in the dark and it effectively set the brand apart from competition. The contoured Coca Cola bottle was trademarked in 1977. Over the years, the Coca Cola bottle has been inspiration for artists across the globe -a sampling of which can be viewed at World of Coca Cola in Atlanta.
Photo by Sol Image
The first marketing efforts in Coca Cola history were executed through coupons promoting free samples of the beverage. Considered an innovative tactic back in 1887, couponing was followed by newspaper advertising and the distribution of promotional items bearing the Coca Cola script to participating pharmacies.
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Fast forward to the 1970s when Coca Cola’s advertising started to reflect a brand connected with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing bottle of Coca Cola. The 1980s featured such memorable slogans as “Coke is It!”, “Catch the Wave” and “Can’t Beat the Feeling”. In 1993, Coca Cola experimented with computer animation, and the popular “Always Coca Cola” campaign was launched in a series of ads featuring animated polar bears.
Each animated ad in the “Always Coca Cola” series took 12 weeks to produce from beginning to end. The bears were, and still are, a huge hit with consumers because of their embodiment of characteristics like innocence, mischief and fun. A favorite feature at World of Coca Cola is the ability to have your photo taken with the beloved 7′ tall Coca Cola Polar Bear. Coca-Cola Beverages Africa (CCBA) is the 8th largest Coca-Cola bottling partner worldwide by revenue and the biggest on the African continent, accounting for about 40% of all CocaCola volumes sold in Africa. The CocaCola Company has been investing in Africa for 90 years, since 1928, and is
present in every African country. CCBA - headquartered in Port Elizabeth, South Africa - boasts a diverse pan-African footprint with more than 37 bottling plants servicing over 600 000 outlets that serve a combined population of over 300 million people across the continent. Coca-Cola Beverages Africa serves 13 countries in subSaharan Africa: South Africa, Ghana, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros, Mayotte, Eswatini, Botswana and Zambia. The company directly employs more than 16 000 people and enjoys the
number one market position in most of these territories. CCBA is pursuing an ambitious growth strategy that is aligned with The Coca-Cola Company's 2020 Vision and which is supported through investment in manufacturing, sales, distribution and marketing. It is a world class, customer-orientated, socially and environmentally conscious fastmoving consumer goods (FMCG) company. Sales and distribution excellence are the company's core strengths and employees conduct themselves with the utmost integrity for shared value and greater good. The
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Coca-Cola in
Ethiopia company's vision is to refresh Africa every day and make the content a better place for all, an inspiration that is driven by engaged, motivated and capable employees. Coca-Cola in Ethiopia According to the vision statement of the company, Coca-Cola Beverages Africa (CCBA) aspires to refresh Africa every day and to make the continent a better place for all. Its contribution as the Coca-Cola system in Ethiopia is very massive and significant. Coca-Cola Beverages Africa (CCBA) in Ethiopia operates the East Africa Bottling Share Company (EABSC) as well as Ambo Mineral Water Share Company (AMWSC). EABSC has three plants in Addis Ababa, Dire Dawa and Bahir Dar and AMWSC has one plant in Ambo. Apart from refreshing Ethiopians with quality beverages for the past 60 years in Ethiopia, EABSC aims to create greater shared opportunity for the business and the communities it serves across the value-chain. The company’s sustainability narrative states that shared opportunity is more than just money, it’s about a better future for people and their communities, adding that the company holds the belief that doing business the right way by following company’s values and working toward solutions benefit the company. “At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment opportunities as we increase our effort and investment.” Daryl Wilson, Managing Director Coca-Cola Beverages Africa (CCBA) Ethiopia stated that Coca-Cola entered Ethiopia six 22
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decades ago and has since created about 2 100 direct and more than 50 000 indirect jobs in the country and Ethiopia boasts the second-largest population on the African continent. While consumption of soft drinks is low compared to major markets, demand is expected to grow as the middle class rises and consumers are empowered with spend. The Managing Director indicated that since 2010, CCBA has invested an estimated $150 million in Ethiopia. The business contributes an estimated $217 million to the economy annually in salaries, taxes, manufacturing, distribution and local shareholder profits. Daryl Wilson further noted that in July 2020, an announcement was made of a $300 million investment over the next five years to expand CCBA’s operations in Ethiopia. An immediate investment was planned for 2020 of more than $70 million and the balance of the investment will be to build a fourth plant in Sebeta, 25km outside Addis Ababa with a fifth plant planned at Hawassa. This includes specifically making investments in response to and in support of changing consumer preferences such as the launch of Zero variants in Coke, Sprite and Fanta as well as Fanta Red Apple with reduced sugar with plans to introduce additional categories of beverages into the future. Furthermore, through its plastic waste collection and recycling initiatives, CCBA enables a green circular economy by training unemployed women and youth to establish
“
At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment opportunities as we increase our effort and investment.
”
collection enterprises which in turn grows plastic collection and recycling infrastructure and supports the development of a circular value chain. This is a key component of the objective of The Coca-Cola Company and its bottlers to lead industry with a bold, ambitious global goal: to help collect and recycle a bottle or can for everyone it sells by 2030. “At CCBA, we are confident that we will reach this goal well in advance of the global target date and we are also able to support the creation of small business and employment opportunities as we increase our effort and investment. We want to support local Governments’ waste management objectives by stimulating a green economy where we operate.” Said Wilson. Also, as the first ingredient in most of its beverages, safe, clean water is critical to the long-term success of the CCBA business. Furthermore, a number of the countries in CCBA are water-stressed and in this context, the company takes its water stewardship responsibilities very seriously. Together with The Coca-Cola Company, CCBA are leaders in using water responsibly in operations and giving it back to communities. The company continues to manage water resources through country projects that reduce water use in its operations, protect Abyssinia Business Nework የካቲት
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Coca-Cola, as a socially responsible company, has also been empowering women from communities across its markets through the 5by20 program. This global initiative aims to help five million women entrepreneurs within the Coca-Cola value chain overcome barriers as they grow or establish businesses by 2020. 5by20 programs specifically offer women business owners access to business opportunities, educational courses, financial products and mentors. Since 2010, 159 848 women have been enabled in this way across CCBA as the company's contribution to the global goal. “We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is just our demonstration of efforts in contributing share to the ongoing reform in the country.” 24
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”
We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is just our demonstration of efforts in contributing share to the ongoing reform in the country.
”
local water resources and provide safe, clean drinking water to communities in need. As part of the world's leading beverage company, CCBA has a responsibility to use water as respectfully and efficiently as possible. The company is continuously looking for new ways to reduce water use in its operations, while treating its own wastewater to the highest standards.
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According the Managing Director, CCBA, together with The Coca-Cola Company, is a leader in using water responsibly in our operations and increasing reliable community access to good, safe water. It continues to manage water resources through initiatives that reduce water usage in our operations, by protecting local water resources and providing safe, clean drinking water to communities in need. Through Coca-Cola’s Replenish Africa Initiative (RAIN), in partnership with The Coca-Cola Foundation (TCCF), we have invested over $670 542 which positively impacts 148 454 people - including families working in the agricultural sector – by giving them access to water and sanitation services in Benishangul-Gumuz and the SNNP regions. By the end of 2020, over 332 000 people will have benefitted from the 5 projects we have implemented to date, it was learnt. With regards to environmental protection endeavours, CCBA in Ethiopia took the
initiative in mobilising relevant stakeholders to come together in partnership to establish an NGO called PET Recycling Community Organisation (PETCO). “We have supported the establishment of PETCO by providing $150 000 initial funding. PETCO is aimed at facilitating the collection and recycling of PET by creating the platform that will also directly benefit women collectors and recyclers.” Noted the Managing Director. As part of its support in education, the company has built two stateof-the-art school blocks at Shimbit Elementary School, Bahir Dar, at a total cost of $220,000, benefitting 1600 students. A similar school at the ongoing new factory at Sebeta is under construction at a total cost of $236,000 following consultations with the Sebeta community to understand the community’s needs.
Moreover, the company has invested $31,000 in a bursary programme for outstanding university students from low income families and run a Graduate in Training (GIT) programme for the past 11 years, benefitting 275 employees to date. For CCBA it's about shared opportunity: the company meets the needs of its consumers, develops its retailers and distributors, local suppliers benefit, jobs are created in communities where there weren't any before and its shareholders benefit from the increased viability of its operations and the security of their investments. “We are very happy that we have been in Ethiopia for the last sixty years, and we strongly feel that we spend our money in the right country. I think this is
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just our demonstration of efforts in contributing share to the ongoing reform in the country.” Said Wilson. Well-known that there are villages named after the company’s product-Coca cola in Addis Ababa and Dire Dawa. This shows that the company has left foot prints within communities it has been operating with. “We are so proud and happy to have those villages named after one of our products; it’s very fantastic. I don’t think there are other places we are operating in that are named after the product.” He said and expressed hopes that there will be more villages to be named after our product in the next sixty years. With regards to the recent visit paid by heads of Coca-Cola Company to Ethiopian Premier Abiy Ahmed (PhD), Wilson recalled that James Quincy Chairman and CEO of the CocaCola Company and Jacques Vermeulen CEO of Coca-Cola Beverages Africa exchange views with Premier Abiy on support of the Ethiopian Government Reform Program and the company’s interest to expand its investment in Ethiopia, adding that Abiy appreciated, and welcomed the initiative as well as commended the company’s move to expand its social responsibility through backing the city development works like the Entoto Parks and Beautifying Sheger projects. Regarding challenges the company is facing, the Managing Director noted that Ethiopia is not unique as there are 26
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challenges all over the world, and the company understands African challenges ranging from power and water to forex shortages. “We are closely working with the Ministry of Finance and Ministry of Revenues, and establish a good relationship to deal with major challenges.” Wilson said.
company is concerned, Wilson indicated that the Company will keep expanding, expanding and expanding. It will get in all corners of the country to invest in the community we are working with, providing new consumption and beverages, and seeing into a plastic bottle-free country.
A document obtained from the Public Affairs and Communications Department, Coca-Cola Ethiopia disclosed that tax policy uncertainty as well as foreign currency shortages are a concern for our business. For example, the level of excise tax (as a % of revenue) makes Ethiopia (25%) the market with the highest excise across the countries where CocaCola Beverages Africa operates (13 African markets in total while Uganda (11%), Kenya (8%) and Tanzania (7%).
The Coca-Cola Company and CCBA have clearly demonstrated its commitment to investing in Ethiopia as well as its confidence in the growth of the Ethiopian economy. However, the quantum of its investment commitments was decided upon based on its projected returns under very different circumstances, i.e. prior to the new excise tax as proposed at 25% of revenue.
Prior to the new excise tax framework that was adopted in February this year, the excise tax in Ethiopia was based on 30% of cost of production (which translated to 14% of revenue).” While we welcome the new framework, which is based on revenue (which is simpler to administer and improves tax collection efficiencies), the new framework represents an increase to around 25% of revenue for our business.” Said Wilson. This, according to the company, has a significant impact: If the company does take a price increase commensurate with an attempt to mitigate the increase in tax, we anticipate a volume loss of at least 15% in the first year. It does not welcome the risk of a 15% volume loss since the impact on the business be a restructure with a possible negative impact on direct permanent jobs lost and additional indirect job losses in our value chain. While the excise reduction on sugar does cushion the impact slightly, the net impact is still of great concern. As far as short-term and long-term plans of the
While closing his remarks Wilson said, “The 60-year-journey of the company in Ethiopia has been amazing; we have witnessed continued growth and continued investment. As I said earlier, our 300 million USD investment will bring about continued development.” Today, Coca-Cola is sold virtually everywhere in the world. Researchers working at the South Pole can enjoy a frosty Coca-Cola in the sub-zero temperatures. Mountain climbers in the high Himalayas can stop for a CocaCola at their basecamp 20,000 feet above sea level so high that breathable air itself is a rare commodity. Here in Ethiopia Coca-Cola is said to be one of the most loved and wanted refreshing soft drink people of all ages anxious to drink whenever they are badly in need of relaxation and enjoyment. It’s everywhere in cafes, restaurants, play fields, gymnasiums, star hotels, lodges, resorts, beaches and remotest areas. The drink not only helped to alter consumption patterns, but attitudes toward leisure, work, advertising, sex, family life, and patriotism.
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“
Unlocking
Free Trade
Area By Teshome Fantahun
The African Continental Free Trade Area (AfCFTA) is a free trade area, outlined in the African Continental Free Trade Agreement among 54 of the 55 AfricanUnion nations. The free-tradearea is the largest in the world in terms of participating countries since the formation of the World Trade Organization.The agreement was brokered by the AfricanUnion (AU) and was signed on by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018.One of the advocates that have brought the idea on table was Pan African Chamber of Commerce and Industry (PACCI). ABN’s Teshome Fantahun meets Kebour Ghenna,Executive Director of the Pan African Chamber of Commerce and Industry (PACCI) and discusses CFTA today. Kebour has presided over the Addis Ababa and Ethiopian Chambers of Commerce, the Ethiopian Business Coalition against HIV/AIDS, and the Ethiopian Red Cross Society. The Lycée Française alumni, Kebour Ghenna has been involved in a number of sectors, such as agriculture, technology, media and education. He also served as a non-executive director of the Commercial Bank of Ethiopia, Abyssinia Bank, and the National Fertilizer Company. Kebour also has extensive experience in research and development and has been involved in numerous research projects and worked as an expert and consultant for UNECA, UNDP, WBI, IDRC and others. Kebour has written on a variety of development and governance issues. He had also lectured at the Addis Ababa University Faculty of Business and Economics. 28
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The government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology…. Then we obviously can benefit from CFTA.
Sol Image ABN: Let’s start with the practice of working together and collaboration in Africa; how is it like? Kebour:I think discussions began in 2013. I mean the discussions about Continental Free Trade Area started then. Between 2013 and 2018, African Governments reached a milestone by putting together and signed the conventions. In March 2018 the agreement was signed by all African countries. The result has clearly shown African countries’ willingness to integrate the economy, of course the idea is to go beyond the economy, and integrate tourism and infrastructure as well.
”
Kebour Ghenna PACC CEO “The first phase of CFTA is where goods and services are given priorities in terms of negotiations. There is also another protocol which has been signed to liberalize air travel among 23 countries.” ABN: What is CFTA and how does it operate? Kebour: The continental Free Trade Area/CFTA/Agreement is basically an area, in this case the continent, where goods, services, capital and people are allowed to transfer or travel from one country to another without any friction; For goods, for example,it can be
issues related to custom, tariff, professional traveling from one place to another,etc. The process is not that simple and straight forward at this stage. The first phase of CFTA is where goods and services are given priorities in terms of negotiations. There is also another protocolwhich has been signed to liberalize air travel among 23 countries. There is also another discussion to issue an African passport which would allow people to travel from a place in Africa to another. Some countries including Ethiopia have already started issuing
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Visa, Visa on arrival etc. So countries are really coming closer and closer to each other. ABN: We have already known regional integrations such as EAC, AGOA, ECOWAS, COMESA, SADC and many others, so how is CFTA different from these agreements? Kebour: The structure is quite straight forward. The regional economic commissions are the ones that practically do all the negotiations at their levels and then bring the negotiations to a continental platform where all will be integrated at the continental level. The regional economic organizations are still relevant to build the continental FTA’s. ABN: The Agreement has been brought to a discussion, the first day the required threshold 22 countries have ratified. Within five years as you said, the agreement has been negotiated and ratified by almost all governments. How do you see the momentum and the success of CFTA at this stage? Kebour: The endorsements have already been signed by 54 Countries. Yet, for the implementation you need at least 22 countries and that has also been achieved in a very short time. The negotiations as I said earlier started in 2013 and in 2017 March the first agreement was signed and the ratifications happen within a year which I would say a record time. Looking at the momentum, you could say that the journey ahead might not be that difficult as many people think. So the plan,I think, is really moving ahead. ABN: These days again countries are closing their frontiers again, this 30
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The first phase of CFTA is where goods and services are given priorities in terms of negotiations. There is also another protocol that has been signed to liberalize air travel among 23 countries.
”
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week Nigeria has announced that it has closed the border with Benin, can we say that CFTA is being challenged? Kebour:When you look at the world today, there is more and more a kind of thinking that CFTA is not beneficial to countries. There is a sort of protectionism whereby countries protect their businesses. The case that has happened in West Africa is probably a reflection of that attitude but I wouldn’t say. We have to be careful regarding the case in Nigeria and Benin; it is a sort of controlling illicit trade I don’t think that puts CFTAin question. ABN: Most of the commercial transactions are dominated by few countries like Egypt, South Africa, Nigeria, Morocco, etc. People say that CFTA is not a kind of agreement that benefits smaller countries like Djibouti, Eritrea, Benin and even Ethiopia. Does this agreement serve only big economies? Who are the winners and losers of this agreement? Kebour:There are countries that are well positioned to benefit from CFTA. They are quite a few countries benefited initially from CFTA. But overall, when we talk about CFTA it is not a mechanism to benefit all countries at once. That did not happen even in Europe. What happened in Europe was countries that were better off have allowed the transfer of funds to countries that were not better off with the objective that, in the long run, to help the entire continent. We are not currently at the level where the openingof frontiers will be somewhat difficult for countries that are aspiring to do business in the continent. I think we obviously have smaller countries that have difficulties in
catching up the bigger onesbut that is again something that can be negotiated. When you take the case of Ethiopia, it has not really allowed. It has not agreed to liberalize 90% of its goods like many other countries of the continent. So far seven or eight countries have agreed to liberalize 85% of their produces. We have to negotiate more in order to help smaller countries and countries that need really to build up their productive capacities to arrive at a level where they perhaps compete at equal footing with others. “The government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology…. Then we obviously can benefit from CFTA.” ABN: How is Ethiopia doing in this regard? Kebour:There was a study done by the Ethiopian Chamber of Commerce on a sort ofidentifying the challenges and the difficulties of Ethiopian cross trade. Ethiopia has both the opportunities and challenges. It has the opportunity to expand its exports to neighboring countries. Until recently, it has been building a manufacturing base which would have allowed exporting many of its goods to other African countries. Until recently, it was a country that was very attractive to FDI, to investors who want to base their manufacturing plants in Ethiopia. However, Ethiopia is disadvantaged in a sense that many of its companies are quite weak so they may not be able to
Sol Image compete at a continental level. Therefore the government should set up a strategy in order to strengthening those companies that need to be strengthened to be able to be participating to benefit from CFTA. In certain areas, local businesses need to be protected. This is the kind of strategy the government needs to study and try to work out with the private sector. So far it has not happened yet. I think it is better that these things happen ratherearlier than laterwhen maybe it is bit difficult to rectify. ABN: Some experts talk about CFTA is not a race that rewards
most of the runners. It benefits very few countries which are faster. How do you think countries be faster in the race to benefit from CFTA? Kebour:You know CFTA is just a mechanism or an agreement which would allow countries to take benefit of low or no tariff, which would allow countries to transfer capital. The main thing you have to do is to build your productive capacity. Unless you have anything to sell or to export, having an agreement is not going to be much of a benefit. Therefore the government has to be one willing to accompany small and medium enterprises to do well, to bring banks closer to them. It has to bring technology; it has to improve
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schools and a lot of things need to be done. Then we obviously can benefit from CFTA. I think CFTA, for me, is an instrument that would help totally the overall business ecosystem in Ethiopia; some of the legislations have to be updated, others need to be changed, some new legislation need to be introduced. Innovations have to be encouraged. We have already the government focusing on five areas. If that is really the way to go, then these five areas should be very much supported all the way to the end so that they could benefit from CFTA. There is a lot of work that need actually to be done. ABN:The argument is CFTA benefits SME’s and there is also another counter argument that CFTA increases cross border competitions. How do you think Ethiopian SME’s be able to compete the Giant Nigerian or Moroccan businesses? Kebour:Today most of the large businesses and global manufacturing companies are disappearing. I think the winners these days are the smaller and more flexible, one two three person companies. They are really doing very well. There is always an opening for smaller ones providing goods and services, providing complimentary products to larger products provided by the giant ones. I mean, they even can benefit from the value chain that the bigger ones establish. There are still doors for micro, small and medium enterprises. Yet, it still needs a strategy. The government needs a strategy to bring in finance to smaller companies. Smaller 32
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companies in Ethiopia have difficulties in accessing funding. This has to change actually in order to help the 90% smaller and medium enterprises.
Sol Image need really to be very much concerned about big Nigerian businesses coming here to do business.”I think if we are well-organized, being very small or very innovative will take us a long way.
The answer is “I don’t think we
ABN: You have said many times that
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we need strategies to benefit from CFTA, to help SME’s etc. But my question is who should design these strategies? Whose responsibility is to build strategy? I mean what is PACCI doing in this regard for example? What are you doing in this regard to help governments have a viable strategy etc.? Kebour: One of the things that I have noticed not only here in Ethiopia but also in my travel across the continent, is the departments, the ministries do not talk to each other. For me it is amazing, for example, the Ministry of Trade has little or no contact at a professional or expert level with Ministry of Education. Ministry of Education does not know what goes on in the Ministry of Industry and so and so on. That has to change. All the ministries have to work as one and CFTA is one project actually which they can work together. When you go to the Ministry of Industry, an expert has to be able to tell you what another expert in the Ministry of Education is doing in order to strengthening the capacity of schools graduating students in business. We need really to work in harmony. Effort has to be put to change the culture and the way, not only government-togovernment but also government-toprivate and private-to-private sectors. The responsibility falls not only to individual leaders but also I think we need really a coordinated effort that brings all these to an organization. ABN: The most frustration fact in Africa for governments to open up I think is immigration. How is it possible for governments to open up given thousands of people migrating each day? Kebour:We have difficulties these
have to stand together to address all these problems. Otherwise, no German, or French or American is going to come to help us. “One very successful company in the government hand is the Ethiopian Airlines; other not successful in the government hand-Ethio-Telecom can improve its management and its services while in the government’s hand.”
days to communicate at regional levels. You can imagine how difficult it is going to be at the continental level. We have to start to believe on an idea, Africa is ours.
ABN: The renowned global magazine-The Economist has reported this year that most of the imported goods in Ethiopia are illicit products; medicines, telephone, imported drinks, cosmetics, cigarettes etc. In its report unveiled on the 4th world illicit trade summit, it was reported that 40% of the total tobacco products are illegal. South Africa’s illegal trade accounts for 33 percent of the total maker and is as high 43 percent in the non-organized trade, resulting in eight billion lost taxes annually. Having seen the extent of illicit trade in the continent, don’t you think contraband and illicit trade would be challenges for CFTA?
We are all in this continent; we probably have the same culture, the same level of development. We want to travel from one country to another. Some countries have already done others have not yet. We need to ask ourselves, what is the ultimate objective? The reason these people are going from one place to another is because there is perhaps no enough food or there is no security or some violence going on in their countries, therefore, we Kebour:It would be a challenge. However, again the answer is you need to have a stronger “One very successful government, a government company in the that is difficult to corrupt. Illegalities including corruption, government hand is Ethiopian Airlines; other contraband etc. prosper when they have someone in government not successful in the protecting them be it a law or government hand-Ethio- individuals. Some countries have already been able to reduce illicit Telecom can improve trade with the help of CFTA in the its management and sense that there is no need to go its services while in the through customs and get charged 100% or 200% of custom. That government’s hand.” Abyssinia Business Nework የካቲት
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disappeared due to CFTA that would in a way discourage the contraband. You have to reform your institutions at the border so that they cannot really encourage such illicit activities to grow. The most important thing in my opinion when we accept CFTA we have to at the same time work on our institutions. We have to strengthen the institutions; we have to encourage them to speak to one another to work together. We have to bring in all governmental and non-governmental organizations to talk to each other. We have to make the government talk to businesses. I think it is something that everybody needs to participate to better address this problem. ABN: Tell us about privatization and the businesses that the government wants to privatize. Kebour:You can privatize businesses that can be easily (I would say) privatizable. I think that is a normal way of looking at things. The government may privatize businesses whenit thinks that the businesses are performing less than they have to. I mean the government has to be free to do other things that others are not capable of doing; for example, the 4G network installation, Biology, Medicine etc. When you call government to play a role, it is where the private sector has failed to do so. But you have also areas where things are considered strategic; strategic because they help the country develop in other areas. They bring not only revenue to you to finance to finance other new developments, to finance develop new schools, to finance actually develop innovation programs etc. But also they can also bring in other companies build around 34
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major strategic companies, other sort of major technology. They have a role more than the services they provide. These companies are considered strategic therefore these companies should not be privatized. They should be reformed in one way or another. The basic examples for us is two examples that are diametrically opposite but two companies that require technology, skilled human resource, marketing. One very successful company in the government hand is the Ethiopian Airlines; other not successful in the government hand- EthioTelecom can improve its management and its services while in the government’s hand. You may have to change individuals at the head of the organizations or the way the organization works but you don’t simply sell these businesses. Ethio-Telecom like Ethiopian Airlines can be very productive, innovative and useful. It is useful still. I mean you can make it attractive for others to join in. Ethiopian Airlines goes from Ethiopia and does business in Kenya, in France, in the United States. I don’t see why Ethiotelecom does not do business in Sudan, in Djibouti. This is by choice. We made a choice to have this kind of telecommunication organization in Ethiopia, and that is the government’s choice. And the government is saying I want to sell it because it is not performing but people have to be able to say “it is your choice that made the organization non-performing.” The government’s decision to denationalize what was the national entity and to give it to a foreign
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investor has an implication on our sovereignty. It is like giving part of our sovereignty. These big companies are much bigger that the government thinks they are in terms of influence. They are once gone it is very difficult actually to get use of these companies. Telecom today is a sector that brings and disrupts work laps in financial services. Telecom plays a big role in financial services. Within five or six years we will not have manual Banks. They should be digitalized and the main platform is telecom. Where our sovereignty then? The idea of keeping 60 or 50 of ownership is may not mean much as long as you don’t control the management of the organization. The whole story that goes on in Ethiopia these days, political challenges within the regions, part of the regions, the language etc. should not be the main issue. The main issue is while everybody is focusing on these issues we are losing the most important things for the country smoothly, slowly no-one really is asking about these. ABN: Looking at two countries Kenya and Singapore, one is a winner and the other is a loser after privatizing the national carrier. Can we generalize that privatization is good or otherwise? Kebour:You bring in the Example of Singapore; Singapore Airline is a government company. The
really concede that it can be paid. Imagine we are at the zero% interest rate, move it to 1 or 2 %, with the level of debt you have, how much of your revenue will go in to covering the debt. It is impossible so we have reached this level. We, in changing our approach to development, are adopting what has failed in many countries even developed countries. ABN: What are the types of privatization?
way they setup is really different. By the way 90% of the business is under government or some sort of government involvement. Singapore has been able to change and transform the management of this public association to be as performing as a private sector sort of organization. Yes it is by choice. Now, when they arrived at a level where they are confident enough this particular sector can be released to the private sector without disrupting the integrity of the public and the sovereignty of the country. They move towards it. They move on to a lot of things actually where the private sector have difficulties in investing on. Singapore has been successful in moving in to these kinds of sectors. When they arrive at a certain level the government quits and privatize the sector. These major entities in Singapore are still owned by government. But the structures they operate under as the private sector are rewarded on the process that they generate if they don’t generate they will be let go. But the model that we are trying to adopt which is the neo liberal model where privatization has the major role, the role of the government is diminished, where any kind of production has to made by the private sector, where social services have to be reduced in favor of private sort of services. All these have created an environment where many of the countries that we want have made the right policy questioning themselves. In France, for example, they have these people out on the streets saying that they cannot really live on the salaries they are generating. In France the ones that are growing more and more are somewhat retrenching or reducing.It is same thing actually or even worsein the US. Today we have a debt level where we cannot
Kebour: There are many types of privatization such as constructive privatization. Here you still keep some parts of the company and subcontract the management. A good example in this regard is the Hilton Hotels. Hilton Hotels has been profitable for years actually and the government has decided to privatize. I mean a hotel you privatize and tomorrow you can build a hotel. But you cannot build another Airline tomorrow. That is the fact. You have that type of contract, the management takeover. Instead of privatizing the public asset, you take over the management. Then you have the outright sell. There are quite a few types of privatization arrangements. The 49/51 arrangement is a trick actually. We have seen it when they sold Ethiopian Tobacco; initially 49/51% then another 20%, then another 20% and today all have gone actually. For me tobacco again is not a strategic asset. When they say 49/51 it is a trick next time to say guys we are not moving ahead so we have to be innovative, we need new equipment, new software and we need to borrow one billion dollar. So 51% Ethiopia and it will pay 51% of that debt. Even you don’t know where they spend that 51% because you are not managing it. I know you cannot pay the debt; therefore, let us make it 60% 80% and finally 100%. These are welldocumented tactics. ABN: Are you Optimist regarding CFTA, will it realize? Kebour:As an African, I want to be and need to be optimist. If not that I don’t want to think this thing is not working. What I want to say is….Yeah! this is challenging. We all have to put on our minds to make it work. I mean this is so in that sense I am Very much optimistic. ABN: Thank You very much for the time you share with us! Abyssinia Business Nework የካቲት
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BGI Ethiopia:
Pioneering By Daniel Tiruneh BGI is the leading brewery in Ethiopia with a leading share of the domestic beer market. BGI services thousands of sales outlets all over the country, and deploys Promoters to visit and monitor these outlets regularly. Apposit worked with BGI to develop a Sales Outlet Management platform using its Connect product that allows its Promoters to record and submit all sales and service follow up data electronically. This paperless data collection is aggregated automatically, and provides real time insight and actionable analysis to management and operational departments. BGI Ethiopia PLC, subsidiary of the Castel Group has recently introduced two new beer products in the market dubbed Doppel alcoholic beer and Senque malt, a non-alcoholic beer. Daniel Tiruneh presents a few questions to BGI Ethiopia Commercial PR Manager Gebreselassie Sefer ABN: When did BGI Ethiopia begin operation in Ethiopia and what was the motive behind its presence in Ethiopia? BGI International started its operation in Ethiopia in 1991 after acquiring the St. George beer brand from the Government of Ethiopia. The company expanded its footprint to the Ethiopian Market to address the need of the category consumer by offering its diversified portfolios. By doing so, the company has also created a job opportunity to thousands of fellow Ethiopians. ABN: Where are your export destinations? BGI being an international company continued to expand its presence in the different part of the world. 36
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At present,we export to East Africa (Djibouti, South Sudan), Europe (France, Germany), North America (Virginia, Maryland, Dallas etc.), Australia, the Middle East and Israel, to mention a few. ABN: How do you execute your marketing and promotional strategies? BGI Marketing and Sales force work together in close collaborationto identify the business need in the Marketplace and accordingly craft relevant strategies that addresses the business gap. In addition, in-order to maintain our product competitiveness in the marketplace, our brewing experts ensure in maintaining the highest quality standards of our products by using quality ingredients supported by modern brewing technology.
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BGI Ethiopia
Brewery
Photo By BGI
Gebreselassie Sefer Commercial PR Manager ABN: Describe the information communication technology (ICT) being implemented in the company?
trainingsare also to enhancethe productivity.
BGI ICT is the backbone of our business in implementing steps from production to selling techniques to manpower support in a structured way.
ABN: What are the contributions of the company to the socioeconomic development, and beautification efforts being undertaken in the capital of Addis Ababa?
ABN: How do you monitor and evaluate the professional capacity of your employees at different levels? Key-Responsibility-Areas (KRA) are defined and shared to the respective employee and will be evaluated accordingly at a set timeline. Regular
conducted employee
BGI Addis Ababa being the capital, a great effort has been doneto support the city in different areas; developing park,support in cleaning the city and on different occasion securing own land and
planting trees to protect the environment. The recently opened 'Entoto Park' has positively altered the landscape of the city with its marvelous aesthetic as well as promotion of healthy living. It has become a culmination of household names coming together to change the livelihoods of those around the area for the better. BGI stepped up in constructing Sen'q shops, retail businesses that aim to change a towering legacy of women's poverty.
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Drawing upon the love of motherhood, these shops opened to provide job security for women whose livelihoods depended on the collection of firewood from the forest. BGI intends to take this even further by expanding this project into upcoming mega-projects in Addis Ababa. ABN: Tell us about your new beer products. Doppel and Sen’q malt, nonalcoholic beer.How is the Market? Why are you interested to come up with such products? BGI We have taken our time in preparing products that meet the highest quality standards, crafted within the latest technology. No resources have been spared in presenting a product brimming with excellence. To this end, in 2020 the company has introduced two a taste they will never forget. It brands Doppel and Sen’q to address the is made for consumers who are looking for a change of pace needs of the diverse consumers. in their beer preference, one of Doppel Brown Beeris the first Ethiopian bold taste.Doppel Brown Beer Brown Beer with a golden color /shade. is produced keeping in line with This makes it the eccentric and taste-rich state-of-the-art technology and product that it is.Doppel is a product innovative brewing techniques that has entered the market with a firm from the finest of ingredients. flavor in hopes to leave consumers with This is to meet the aim of
satisfying consumers to the fullest. Bold Taste acquired through the perfect balance of fine ingredients with the 5% Alcohol content. Sen’q is setting the trend in the Malt industry by embedding Vanilla and Ethiopian coffee for a rich taste and high quality. From the usual standards of focusing on Malt-centered production, this product takes it a step further in giving the consumer an energy boost full of flavors.Sen’q Malt Drink is completely free from alcohol and suitable for those seeking a refreshing and nutritious taste to satisfy their thirst.The source of its complementary health benefits and nutrition come from the process of fortifying it with essential minerals and vitamins. It is a taste to behold as well as one to nourish the body. ABN: Have you faced any challenges during your
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Photo By BGI operation? If so, what are the challenges? BGI So far, the operation is going smoothly as planned and well received by the respective consumers. ABN: It’s well known that BGI owns and manages the Castel Winery and Vineyard located in Zeway town. Tell us about the motive behind its establishment, its productions, employees, and other related issues? BGI In-order to put Ethiopia in the wine map, BGI Ethiopia has selectedZeway as its base due to its environment suitability and availability of sufficient water. The company has also brought wine experts from France to look over the winery. The modern farm is sited in 600 Hectare. The product portfolio includes: Acacia, Rift Valley and Prestige with 2 White, 2 Rose and 6 Red Wines. The winery has also opened huge employment opportunity for the locals and created an investment opportunity for Ethiopia. ABN: What are the company’s key achievements?
BGI Ethiopia has been increasing itsbrewery footprintthrough the years. Currently, we have 5 different breweries located in Addis Ababa, Hawassa, Kombolcha, Raya and Welkite. Raya and Zebidar Breweries are the latest addition.Furthermore, Castel Winery, BGI’s sister company, located in Zeway, is brewingand distributing widerange of quality wine countrywide and beyond.
employees to overcome the current health challenges in the marketplaceand to be able to serve the consumer with extra care.
As a category leader, our Breweries and Winery have created employment opportunities for thousands of local/expat employees.
BGI Ethiopia has been actively engaged in the ongoing CSR activities aimed at empowering employees, promote workplace safety, protect the environment, healthcare, education, art, sport, infrastructure, supporting disability and engagement with NGO. It will also continue to work closely with its stakeholders by timely addressing the challenges in the above sectors.
ABN: Tell us about your short and long-term plans? BGI Ethiopia has short and long-term plans. Short term is to continue to train, equip and empower our
In the long term is to put Ethiopia in the first place in the category of beer and wine in the African Map. ABN: What are the major social responsibilities BGI has undertaken so far in Ethiopia?
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HARAMBEE UNIVERSITY: TRANSFORMING LIFE THROUGH
QUALITY EDUCATION
Harambee University was founded in 2002 in Oromia Regional State in Ethiopiawith the aim of enhancing the development of the education sector. The Word “Harambee” is an African Motto which was taken from Swahili Language, which Means “forget the past,Let us work together”. The University was primarily founded as a center for learning foreign languages especially English language in Adama town. Currently the University has 557 full time staffs in different academic ranks and qualifications. The University has also launched six campuses out of Adama Main Campus in Fitche Selale, Bale Robe,Holeta, Awash, Arbagugu and Muketuri. The Universityprovides three accredited Master’s Programs in Masters of Business Administration (MBA), Maters of Science in Accounting and Finance, Masters in Project Management. In addition, the University enrolls students in 11 accredited undergraduate programs in Accounting and Finance, Business Administration, Marketing Management, Economics, Management, Management Information System, Computer Science, Nursing, Pharmacy, Public Health and Midwifery. Based on the progress it has made over the years in the education sector, Harambee University aspires to be among the top ten prominent universities in Ethiopia and the premier center of quality education and demand-driven research in less than ten years’ time.Having the motto "Transforming Life through Quality Education’’ as a driving force, Harambee University believes if there is hard work, the sky is the limit.
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Feyissa Ararssa
General Manager at Harambee university
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Humble beginning
Easy Technologies plc.is one of the fastestgrowing tech-enabled start-ups headquartered in Addis Ababa, Ethiopia working with several professional permanent and temporary employees. The company has applied its in-depth domain of expertise to deliver various ICT-based solutions ranging from designing and implementing of core network infrastructures system.AwadYunus Chairman, Easy Technologies plc. shares his company peculiarity, experience and future endeavours with Abyssinia Business Network/ABN/
Founded by two visionary and ambitious young individuals Easy Technologies plc is currently engaged in empowering technology based solution for the population. As a technology company they believe Challenges in Ethiopia faced can be dramatically simplified. After some research they figured out 5 key sectors in which they could work on projects that can yield great impact: Telecommunication, Transportation, Delivery, Digitalization and payment system.
a big challenge for their business not to continue as usual and normal. Thus, they focused on creating value for the public in this moment of hard times. They have begun to deliver goods, focusing on food, and sanitary productsand more to the public residing in all corners of the capital, Addis Ababa. This service has stretched its wings to delivery of magazines and newspapers to homes and offices. “We believe we have done our part as a company on those hard times". AwadYunus co-founder recalled.
“We set out to solve few of the problems to elevate our city. As it’s a company that aims to make Ethiopia Convenient, Digital and Green.”
Currently the company portrays as Customers are at the heart of everything they we do. The company currently has developed 5 mobile applications and integrated to various services in the city. Customers can have access to delivery services, mobile top up, transportation services and Digital publications.
They stated small in Telecommunication. After operating for 6 months as it has impacted other businesses the corona virus pandemic hit Easy Technologies plc. as well. This created
“Creating convenient spot, digitalization and green. This could be interns of visuals as well as how we work in the city. We believe green economy is the future and we have ambitious plans to create green digital city for local and foreign tourists.”
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"We set out to solve few of the problems to elevate our city. As it’s a company that aims to make Ethiopia Convenient, Digital and Green". The company is working on a payment solution that is expected to deliver international standard mobile payment service. “We set out to solve few of the problems to elevate our city to the highest level as it’s a company that aims to make Ethiopia Convenient, Digital and Green.” said co-founders AwadYunus and Dr. Hindia Mohammed. Recently the company have launched a product called Easy Shelf is an online and offline publication distribution platform, where users can find Books Magazines, newspapers and other publications. It enables publishers to distribute their content digitally without time and geographical constraints. This new service that has proven its capacity and service quality in a short time is now making Ethiopian books, magazines and newspapers available for international community. The company believes this will have huge impact in terms of reducing the use of paper. This is impact full in a country like Ethiopia where the population is large. Hence, there next mobile app is going to simplify all of the services and products in to one single platform. Addis can have face lift in the following three areas “Creating convenient spot, digitalization and
green. This could be interns of visuals as well as how we work in the city. We believe green economy is the future and we have ambitious plans to create green digital city for local and foreign tourists.” Said Dr. Hindia Mohammed, co-founder
“
Currently the company has created job opportunities for about 30 citizens. But through its apps more than 100 people use to generate as a revenue source as part time and full time. Further they are working on increasing the numberto 10,000 in the next 1 year. Furthermore, the company is currently in process of using fully electric bikes for delivery to reduce fossil fuels. Having a user of more than 30,000 people the company believes this is just a beginning. Expressing their vision GM EkramYunus noted, “We believe a city is a single entity that works in harmony. Addis Ababa being the capital city of the nation, Africa and seat of various regional and international organizations has a lot of opportunities and problems altogether. "As we are moving to a digital and ever changing world, we, as a city need to do so.” Added to this, The Company plans to create 2,000 direct jobsand 100,000 indirect jobs,digitize the city in providing products and services online, and introduce the city to electric cars and charging stations. Further it elevates the city’s beauty and makes Addis Ababa tourist-friendly destination.
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Mulu Eco-lodge: Pioneering Unique Trend in Ethiopia By Aklile Tsige
Photo by Mulu Eco Lodges
Responsible tourism can be a driver of sustainable development and the preservation of natural and cultural heritage, but if unplanned and poorly managed it can be socially, economically and culturally disruptive and cause damage and degradation to sensitive ecosystems, landscapes, monuments and communities. Indigenous and local knowledge and cultural traditions can contribute to climate resilience. There is widespread recognition that indigenous and local populations have unique and valuable local knowledge, traditions and cultural practices that can contribute to effective management strategies in the face of rapid climatic change. Very recently an Ethiopian young entrepreneur and a German environmentally-minded woman unexpectedly met in Ethiopia’s capital, Addis Ababa and came up with an idea of establishing an eco-village at the birth place of the former. The couple had the opportunity to introduce and promote their uniquely designed eco-village and -lodge at the 7th.Africa Hotel Show and Hospitality Show held at the Millennium Hall in Addis Ababa a month or so ago .ABN Editor-in-Chief Aklile Tsige speaks to the newlywed couple behind the realization of their childhood dream. 44
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The Tale of Two Dreams Abiy Alem, an Ethiopian visionary was born at a small rural village called Ta’eme kebele in West Gojam Zone of the Amhara Regional State. After having studied only for a year at his birth place, he has moved to the nation’s capital, Addis Ababa with his brothers, joining Lazarist Catholic Mission School until he has completed 10th grade. He then joined School of Tomorrow where he had completed his
secondary education. The hardworking Abiy has successfully passed his matriculation and got the opportunity to join Mekelle University, and received his BSc degree in Computer Science in 2011. Valerie Seitz was born and grown up in Munich, Germany. After having completed her education, she has made attempts to realize her dream of visiting Africa by applying to an organization to do volunteering work. She then joined
a non-governmental organization working on environmental protection in Addis Ababa. But Valerie was not very happy working in this NGO due to various reasons. Two dreamers, a German and an Ethiopian met few years ago in the Ethiopian capital, Addis Ababa when both Valerie and Abiy were living at the residential area called “Gotera Condominium”. “I was living in Gotera condos with some other volunteers. Abiy also had
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a room there. So we met there and started talking and strengthening our relations; we’ve understood that we had a common dream of engaging in eco-tourism to support rural communities. So we’ve decided to establish an eco-lodge and -village.” says Valerie. Abiy who earned his first degree from Mekelle University was not happy in his life though he tried to do various businesses with his friends. He simply kept on chasing his childhood dream. He then joined a hotel and tourism school where he has got his diploma in tour and travel; he has also received the ´Foundation in Travel and Tourism from IATA correspondence diploma` from Canada so that he could gain more insight into eco lodges and ecotourism. Equipped with relevant knowledge and skills, Abiy realized the fact that he was only on the threshold of the intended business. There had to be feasibility studies and community conversations for reliable implementation of the long-awaiting project. Abiy explained, “I did more research on ecotourism which helped me develop a better understanding of the concept. So I had to do something, to start a project as I believe ecotourism has a good potential. Finally I have designed a small proposal.’’ Abiy was not doing things alone, his soul mate, Valerie was working with him tirelessly and energetically to achieve their common dream from the onset. “We’ve spent nearly three years to get into the project, discussing, thinking and exchanging ideas. So we decided to go to the countryside 46
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where Abiy was born. We have travelled several times to Ta’eme to undertake research in the area,’’ Valerie recalled. Now the remaining task was to go through the monotonous, intolerable bureaucratic process of getting business license from regional and local authorities; this may be the last chapter to make a dream come true.
“For me it was really amazing because farmers in Germany are often conservative, not open for new things; it was completely opposite here.” “Before contacting both regional and local authorities, I had to talk to my family about our plan; we were also in the community discussing the issue, gathering different information on support and cooperation we might get.” said Abiy, adding, “I went to Bahir Dar where the regional Culture and Tourism Bureau is situated, then to the Zone, West Gojam zone. Fortunately, I’ve got the investment license very quickly within three hours.” Nevertheless, the going got tough as moving to the lowest administration level. Here at the Woreda (local administration level) the dream team had encountered rigorous hurdles which took them nearly a year to leap over the bureaucracy.
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Sol Image Interestingly enough, the local farmers played a pivotal role in the project implementation, working closely with Abiy and Valerie. They were pushing them to start the project as quickly as possible. This, in deed, attributes to the unforgettable and good deeds of Abiy’s father who has undertaken various socioeconomic development activities in the locality. Apart from his father’s social contribution to the local community, Abiy was also doing some kind of social responsiveness. “Whenever I went to the village with my clients or visitors, I used to take books to the local school
CONTEXT The realities of life on our planet dictate that continuous economic development, as we know it in the form of global capitalism, cannot be sustained. This is due to presentday forms of economic activity that have rapidly undermined two other processes which are essential for survival of human life and civilization: environment and community. The compromising of these two processes by current economic activities has destroyed both the vitality of human communities and the quality of human life [ICLEI 8 IDRC 1998].
libraries, and facilitate medical the uniquely designed Mulu Eco treatment access to the most Village has now become a reality. disadvantaged members of the community.” Abiy noted. “For me it was really amazing because farmers in Germany are often conservative, not open for new things; it was completely opposite here.” Valerie appreciated the local farmers. Taking credits for those deeds, farmers and other community members became one of the most important pillars to kick off the project, to make a dream come true, and eventually lay the anchor. The foundation to erect
Concept of Eco Villages
FOR A SUSTAINABLE ENVIRONMENTAL AND HUMAN DEVELOPMENT An Eco village is an intentional community with the goal of becoming more socially, culturally, economically, and ecologically sustainable. It is consciously designed through locally owned and participatory processes to regenerate and restore its social and natural environment.
Scientists around the world almost unanimously predict that, without serious policy and lifestyle changes, the world is about to face a great uncertainty and new risks threatening our ability to anticipate and plan for future adaptation needs [World Bank 2012]. Preventing this expected environmental, economic and social consequences, is undoubtedly the biggest challenge for human security in our century. Clearly, there is an urgent need for sustainable human activities on our planet, which will require alternative forms of sustainable living and societal organization. Two movements operating on a global scale h are critically involved in the ‘research and implementation of sustainable alternatives: the Eco village Movement and the Global Eco village network.
Description The Eco village movement is growing worldwide. Governments, new communities and inhabitants of existing villages and suburbs are consciously choosing the path of sustainable development.
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change. Eco villages and communities worldwide combine modern and traditional knowledge with sustainable innovative initiatives in agriculture, energy, resource management, democratic governance, conflict resolution, education and economy. They are making a decisive contribution within our society to the quest for local solutions to global problems.
The
Mulu
Eco
Village-
Ethiopia: An Inspiring Model
Photo by Mulu Eco Lodges Today thousands of Eco villages exist all over the globe and share their successful experiences. In the face of both ecological and economic crises, poverty and social crisis, people are coming together to assume joint responsibility for their region, its resources and their social surroundings. In this process they find themselves actors and creators of their own territory.
ecological business and employment opportunities, cultural activities, and enhanced attractiveness for families and travellers. They are; therefore, an active contributor to positive demographic
Today Eco villages are models of lived sustainability; they inspire their region and pass on their experience. In a very practical form, they show how an ecologically and socially sustainable way of living tremendously increases our quality of life. Their examples make clear points: our ecological footprint can be significantly reduced and it is possible to revitalize regional economic and energy cycles. This constitutes an important counterweight to globalization. Eco villages enrich regions with 48
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The Mulu Eco village is an outstanding example of an efficient implementation strategy of an interest-free Eco village in a rural area. The creation of an Eco lodge, in 2017, was made possible through a close partnership with farmers of the area. The Eco lodge holds the precious principles and knowledge of Eco village structural and permaculture aspects and is the key to restore an autonomous and sustainable lifestyle into a weakening community. It is a bridge with the outside world, a place to share and learn new ways of valorizing local lifestyle and it is the keystone of a fair and positive social, environmental and economic development of the area. The Eco lodge is turned towards a community-based tourism and regularly hosts community events. Eco villagers are actively taking part in the management of the eco lodge and its environment, learning to protect nature, to improve and diversify their agricultural activities, to develop handicraft, to share their knowledge and to positively connect to the world. Travellers are integrated in the community and are not just passing
Sol Image by. They are here to encounter and connect with the culture in its whole dimension. Eco villagers benefits socially and economically from rich exchanges, and improve their quality of life.
Kicking off Located in the Amhara Regional State in Choke Mountains, the
Mulu Eco lodge takes an hour by plane from Addis Ababa to Bahir Dar, then 3 hours’ drive to a small town called Dembecha which is 205 km away from the region’s capital, Bahir Dar. Another option: about 7 hours’ drive on a beautiful road that stretches 360 km to Dembecha from Addis. From Dembecha town one has to travel 1 and half hour on dirt road and pebbles to the Lodge of the Mulu Eco Village. There you
go now to enjoy an environmentally friendly eco lodge: Mulu Eco Lodge. Opened in 2018, the lodge was named in honor of Abiy’s mother, Mulu, which is to mean in Amharic language full, complete or integrated. Establishing a partnership with the villagers who are highly involved is the main pillar of the project. Abiy and Valerie are working for the efficient and reliable implementation and sustainability of this pioneer project in Ethiopia.
“The Mulu Eco Village is not only the ideal place to rest and walk while admiring the landscape, but also to meet local communities. Indeed, very quickly, visitors will be part of the family” Abyssinia Business Nework የካቲት
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What makes the construction of this lodge different is that all the construction inputs are organic, and have been exploited and produced from the local sources by the farmers. The greenery landscape coupled with the varieties of indigenous plant species surrounding the lodge is so breathtaking and marvelous. Their goal is to enable villagers to improve their living conditions and they hope to build a school for the village children in the coming years. They already have the support of a small German NGO called Enat Ethiopia and built a grinding mill run by the farmers’ cooperative with the initial support of the German Embassy Addis Ababa. The Mulu Eco Lodge is not only the ideal place to rest and walk while admiring the landscape, but also to meet local communities. Indeed, very quickly, visitors will be part of the family. For example, the Gojo for cooking is open to the outside and allows visitors to participate in the preparation of meals of traditional cuisine based on Injera (large pancake made of Teff, a local cereal). The Gojo for the common dining room not only welcomes travelers but is also a meeting place for locals. Immersion with local communities is at its maximum. The Mulu Eco Lodge is made up of several traditional round huts known as Gojo Bet, built of dried soil with a thatched roof, scattered over a huge field. The Gojo Betoch for travelers are very spacious and some are decorated in a very original way with multicolored pieces of recycled glass bottles, which gives them, from the inside a little magical light. Moreover everything is thought to protect and respect the environment: permaculture concepts, compost, and beehive for the production of honey, solar electricity, and dry toilets. Trekking in the surrounding mountains, horseback riding, participation in local ceremonies, observation of flora and fauna (birds, monkeys), visits of the village houses, school, and participation in local daily 50
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activities like work on fields, cooking, and crafts are the most enjoyable activities carried out with the local community. “For a lot of people it’s a unique experience. They can stay there in the country side with the highland farmers; real traditional Ethiopian life. I think it’s a very unique opportunity.” Valerie explains. This community-based tourism activity, Mulu Eco Lodge appears to be different; it facilitates ways to help farmers form their own associations and come with feasible project ideas that aim to solve their socioeconomic problems like food diversity, solar powered electricity, processing their harvest in grinding mills, education, and the like. Mulu Eco Lodge wants visitors to experience one of the most beautiful and undiscovered parts of Ethiopia: the Choke Mountains. Anyone who plans on travelling along the famous northern route can take a detour and visit the site located at over 3,000 meters altitude at the source of the Blue Nile! Mulu Eco Villages philosophy: Culture, nature and society form a natural unity. This cozy Eco lodge is a community center full of genuine activities where guests and locals get together.
“
For a lot of people it’s a unique experience. They can stay there in the country side with the highland farmers; real traditional Ethiopian life. I think it’s a very unique opportunity.
”
Valerie explains. Abyssinia Business Nework የካቲት
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AAICEC:
to Bring Economic Modernity
L
ike the Grand Ethiopian Renaissance Dam/GERD/, the Addis-Africa International Convention and Exhibition Center /AAICEC/ is the nation’s future source of pride and national identity, it’s also a mega project that Ethiopians and the whole African nations can be proud of. Located in the Eastern part of Addis Ababa, close to CMC residential area,the compound of the AAICEC has a total area of 110,126 Sq. m secured in lease for a period of 90 years. The quest for establishing /AAICEC/ is nothing but a natural expression of economic modernity and derivation of emerging market economy in the country.AAICEC is the brain child of the Addis Ababa Chamber of Commerce and Sectoral Association /AACSA/. AACSA in collaboration with the Addis Ababa City Administration brought AAICEC Share Company into a reality in 2005 E.C. Following the establishment of the Share Company,major private and public companies joined this initiative, among which Ethio-South Investment Share Company, Commercial Bank of Ethiopia, Waryte Mulutila International P.L.C, Gift Real Estate P.L.C, Travel Ethiopia, Abyssinia Bank, Dashin Bank, Wogagen Bank, Ethiopian Reinsurance and Awash Insurance are the major ones. Waving a vision to promote Addis Ababa as a vibrant African Business Hub, the 52
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Addis Africa International Convention and Exhibition Centeraims to provide a venue where members of the business community, executives, policy makers and the general public come together to share business information. The Convention and Exhibition Center specifically gears towards enhancing the roles of the private sector in the national economy, promoting and strengthening the global competitiveness and integration of Ethiopian economy, promoting exports, facilitating technology transfer and inflow of foreign direct investment, facilitating public private partnership /PPP/ and promote inter-African trade and integrating Ethiopian economy with the rest of the world. AAIICEC is the first in its kind in Ethiopia and alsoin East Africa as well. Addis Ababa being the Head Quarter of AU and seat of various international organizations is the ideal location of AAICEC. According to the information from AAICEC General Manager, different international convention centers, including Hong Kong ICEC, Fera Milano and Dubai ICEC were taken as a benchmark while AAICEC was designed.
“AAICEC is a national project like the Grand Ethiopian Renaissance Dam /GERD/which seeks keen attentionfrom the Federal Government and the public at large”
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Ayalew Abey
General Manager Addis-Africa International Convention and Exhibition Center/AAICEC/ S.C. Abyssinia Business Nework የካቲት
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AAICEC
AAICEC houses world-class venues for international conferences, exhibitions, and other related events. According to the master plan of the project, venues to be made available include: • Exhibition ground with a total indoor and outdoor spaces of 20,600sq. m and 6,700sq. m respectively; • Multipurpose hall with the capacity of hosting 5000 guests at a time; • A conference hall with over 3000 seats; • Two auditoriums with 500 seats each; • Six small meeting rooms with a capacity ranging from 50-100 seats; • A four-star hotel; • Amphitheater, • Big malls, and • Other related facilities including restaurants, canteen, lounge and playgrounds. AAICEC Share Company planned to undertake the project in three construction phases that is estimated to cost over three billion birr, and currently the first phase of the construction process stands at 36%.
The 4th Extra-Ordinary Meeting of AAICEC Shareholders has passed the decision that provides with the right to those who purchased shares with total value of birr 100 million and above to share all benefits of founding shareholders. In line with this decision, Ethio-South Investment Share Company and Commercial Bank of Ethiopia will have the privileges of AAICEC founding shareholders. As the project requires a huge investment,the Company still looks forward to having the participation of various private and public companies. The operation of AAICEC will bring a huge number of visitors to Ethiopia, which this in turn will lay a solid market for the hospitality industry and the air transport sector. Accordingly, companies like the Ethiopian Airlines need to invest in this giant project, beating two birds in a stone, building the City’s image and gaining benefit from the investment. 54
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The AAICEC is a national project like the Grand Ethiopian Renaissance Dam /GERD/ which seeks the attention of the Federal Government and the public at large. The international experience shows that such centers are backed by governments. For example, the Dubai International Convention and Exhibition Center is mainly owned by Fly Emirates and the governor of the city. Hence every one should understand that it can be viewed as the country’s future tourist attraction which is believed to generate significant amount of foreign exchange earnings and job opportunity for citizens. When it comes to the Grand Ethiopian Renaissance Dam /GERD/ which has been bringing all Ethiopians at home and overseas together, every AAICEC shareholder has bought bonds and donated significant amount of finance to the Renaissance Dam. “As we are approaching to fill the Dam we are delighted to see the fruits every Ethiopian sowing. It must be completed and go operational as quickly as possible.” It should be noted that our fathers, forefathers and great grandfathers have paid lots of sacrifices in quest for the fair utilization of the Abay River aka Blue Nile. However, a new day has come as Ethiopia, for the first time, launched a mega project over its natural resource, in corporating local financial resource, expertise and labor some nine years ago. We understand the multifaceted benefit of the Dam and will continue to provide support for the realization of the project. We strongly believe that this is key for Ethiopia’s future development; it’s a key project that undoubtedly brings back the nation’s greatness. GERD is a matter of survival for me, my children and my grandchildren and generations to come. As we are approaching to fill the Dam we are delighted to see the fruits every Ethiopian sowing. It must be completed and go operational as quickly as possible.
AAICEC is planned to be a multi-purpose business center which will host a range of events including international conferences, conventions, trade fairs and exhibitions. The center will also be a venue for other related events such as exchange of business information, establishment of business contacts, undertaking of business deals, as well as short-term trainings on business developments. In short, AAICEC is more than a trade fair center. The center is designed in a way that provides multifaceted business facilities ranging from an international convention center to pavilions for showcasing products and services.
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KNOWS NO BOUNDS LUXURY SHOP . EXCLUSIVE DESIGN GALLERY
ወር 2013 February 2021 www.ker-ezhiethiopia.com
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Call +251 11 663 0127 +251 11 618 5732 for more info
Tel +251 11 663 0127 / +251 11 618 5732 +251 11 662 9568 Fax +251 11 662 3431
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P.O.Box 387 Code 1110, Addis Ababa, Ethiopia
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Haile Hotels and Resorts
The leading indigenous hotel chain developer & operator in Ethiopia!
7 5
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Hotline: 8169 www.hailehotelsandresorts.com HAWASSA ARBA MINCH Abyssinia Business Nework የካቲት
ADAMA GONDAR ወር 2013 February 2021
BATU (ZIWAY)
SHASHEMENE
SULULTA (YAYA)
