Eid Mubarak · Eid Mubarak Page 6 INSIDE ... Mahmood Ahmed, you can imagine a stage filled with the Ethiopian band of brothers, donning carefully coiffed afros, dressed in the best

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Year 22, No. 1130 Sunday August 2, 2020 / Tel: +251-11 618 3253 | 11 661 0976 / Fax: +251-11 618 5206 / P.O. Box: 95/1110 Addis Ababa, Ethiopia / Price 10.00

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Eid Mubarak

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INSIDE STORIES

Helping handSMLH-ONM as part of their three-month food support project donated the last and third round assistance

Canal+ Canal + Group is expected to be on air in March 2021 with local content

Ethio telecom’s bonanza Ethio telecom announced that its total service subscribers have reached 46.2 million showing an increase of 5.8 percent

Pulses under ECXThe coming of new pulses at ECX is expected to make it uniform at the trading

Nyala’s support for GERD Nyala Insurance purchased bond worth 12 million Birr to help finance the construction of GERD

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INTERVIEW

Innovate to survive COVID-19Dorothy Tembo acting Executive Director of the International Trade Centre discusses the role of women and youth in post-pandemic recovery in Africa.

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Dorothy Tembo

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Over invoicing affecting local manufacturers

By Muluken Yewondwossen

Local investors are claiming that over invoicing, which is not seen as a priority by the tax authority, is pressuring their activity. Sector experts accepted and said that the claim needs cooperation between revenue office, Customs Commission and financial institutions for a solution. Investors who came up with their claim told Capital that the investment sector particularly foreign investors are engaged in over invoicing for their imports.According to these investors, who demanded anonymity, the problem is mainly observed in capital goods and raw material imports that have a customs duty from zero to five percent.

Foreign investors are using this illegal act for different purposes, according to local investors, who are affected highly because of the illegal activity.Initially in their capital goods import, foreign investors come up with exaggerated cost to get gaps at profit tax, dividend tax and misinform financial firms, according to experts.“There are two revenue collection bodies, customs and revenue collection offices, who are not sharing information properly regarding this issue,” according one customs expert. Fekadu Bekele, advisor of the Minister at Ministry of Revenue (MoR), shared the idea. He said that initially the over or under invoice is deliberately done to evade tax and to access

ESLSE to start ferry service

By Muluken Yewodwossen

Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the only flag carrier in Africa, set a strategy to commence cabotage and passenger services.The logistics giant and multimodal monopoly indicated that in its five year strategy it will include more services including adding new medium size vessels to help achieve its goal.Roba Megersa, CEO of ESLSE, asserted that regarding potential, ESLSE is in a good position in Africa to commence cabotage service to serve coastal areas in the region. Cabotage is the transport of goods or passengers between two places in the same country by a transport operator from another country. “To commence the operation second hand properties might be assigned,” he said. The cabotage operation focuses within particular territory that might be in a single country ports or ports cross border. In this case it might be transport from Djibouti to ports in Eritrea or Kenya and others, according to the CEO.The sea and inland fleet giant has targeted to boost its fleet mainly in the bulk operation. To attain the target ESLSE undertook detailed study to secure two more medium size vessels.“The study was concluded and is approved by the board of directors to procure brand new vessels,” Roba told Capital.“There are two options to acquire new vessels; the property that is already being built for others and the deal might be terminated is the first way, or in other way order from the scratch,” the CEO explained.“If we get a chance for vessels that is under construction the time will be shorter to receive it, otherwise in the coming two years we will get the vessels based on the second alternative,” he added.According to the plan, Roba said that the vessels will have a capacity of 63,000 dwt, while the multipurpose vessels that Ethiopia operates now

Prime Minister Abiy Ahmed held discussion with his cabinet on Saturday August 1 to decide the education calendar. The discussion stipulates to take massive COVID 19 samplings and tests in the next two weeks all over the country and to decide after 15 days

based on the result of the test. During the discussion Ministers of Health and Education presented their report.

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Year 22, No. 1130 Sunday Aug. 2, 2020EDITORIAL

CAPITAL is a weekly business newspaper published and distributed every Sunday by CROWN PUBLISHING PLC.

CAPITAL is a registered newspaper with the Federal Democratic Republic of Ethiopia Ministry of Trade license number 14/673/21142/2004.

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t Reporterst Metasebia Teshome [email protected]

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CROWN PUBLISHING is a private limited company registered with the Federal Democratic Republic of Ethiopia Broadcasting Authority under registration no. 34/2001 and with Addis Ababa City Administration Trade and Industry Development office under registration number 14/673/21142/2004.

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CONSEQUENCES OF PHONY MONEY

Fiat money is a money system where the physical currency in circulation along with other forms of money used in various transactions (bank money, etc.) is not backed by anything material, i.e., not real. In previous eras, money was invariably

backed by something like gold, silver or other commodities (salt, silk, etc.) If truth be told, the only thing fiat currency has going for it is its backing from organized violence, in this case, the states. In all history, the regime of fiat currency has always been short lived and almost always ended up in inflationary collapse! But, since politicos occupying the apex of government make all major decisions of the state, expecting responsible behavior, particularly in regards to money and its management, was never a tenable proposal, to say the least. As a result and just like those previous interspersed eras of fiat currencies, our prevailing world system is now awash with massive amount of phony money that is threatening to trigger severe dislocation of the world order!Many an informed reader knows that the current global money regime was set up in 1944, in Bretton Woods, New Hampshire, USA. One of the major agreements reached between the countries was that gold would anchor the world’s money system. This was to be done via the US dollar. Thirty-five US dollar was to be convertible to an ounce of gold. Since all other currencies were pegged to the USD, it followed, all currencies were backed by gold, albeit indirectly. That was the basis for the stability of global money in the post WWII era. In 1971, the US was financially bleeding on the account of its entanglement in South East Asia. Vietnam, Laos, Cambodia and others became war theatres for decades. Consequently, it became clear that the US was not able to meet its responsibility of delivering gold when presented with its dollars by others. The last straw that broke the Bretton Wood Agreement came from France. The then President of France, Charles de Gaulle brought plenty of dollars and demanded the shining metal. Mr. Nixon, the US president at the time, unilaterally declared that the gold window was closed and henceforth the US currency was to be a free-floating currency that will not be backed by anything, period! Thereafter and by extension all global currencies became fiat! This was a Godsend to many financially stranded countries, as they can now print money with abandon. The inflationary consequences were not immediately visible, until the late 1970s and 1980s. The rest, as they say, is history!Inflation was a rare phenomenon in the long history of the world economy. It was deflation that was the most prevalent in the olden times and economic crisis were invariably triggered by deflation, not inflation! We admit; this can be quite difficult to take in, particularly to those who are born recently and are innocent of economic history. We believe a little sober reflection can reveal why the deflation animal dominated the past. When money is pegged to something tangible with intrinsic value, printing of currencies cannot be done at whim. This in turn tends to restrict speculative economic activities. Money becomes rare and precious. Let’s look at consequences of fiat money as it plays on existing economic reality. For instance, if real money was efficiently employed, rather than phony money, only 20% of the current global workforce is needed to deliver today’s global output! That is why the current shutdown due to the declared pandemic that formally reduced global GDP by about 50%, has not had as disastrous an effect as many expected! The global speculative mania, which came into existence after 1971, managed to flood the world with copious and unnecessary ‘white elephants’. The destruction of the natural world, especially the ecosystem, along with the pauperization of the global working stiff or the sheeple (human mass) in general, is the root cause of the ongoing & impending worldwide insurrections. See Hulsmann’s article next column. From the numerous ghost cities and 90 million vacant apartments of China, to the giant unicorn corporations of the west (Tesla, et al.), to the zombie companies of the wretched countries, bent on replacing pristine nature with concrete junk, will run into serious troubles when the world is forced to reset its financial architecture, hence its very economic creeds!There are indications to suggest ascending powers of the world system might not settle for a new economic order, if it is going to be based, yet again, on fiat currencies. To this end, Russia, China, Iran, India, Venezuela, Iraq and many other countries have started to hoard precious metals, mostly gold, in anticipation of the new world order to come. Understandably, what this lopsided financial regime did to many resource rich countries in the past is laughably ludicrous. For a change, resource rich countries would like to see an exchange mechanism that can genuinely respect the non-renewable nature of their resources. Commodity (gold, silver, oil, etc.,) backed currency is what is proposed by the likes of Putin for the coming new global economic order. China is feverishly working on a gold backed crypto currency to mitigate the negative effects of the current reserve currency, namely the USD. Put together, the immediate future of the world system promises to be quite rocky! On its part, empire doesn’t seem to be in a hurry to address the situation; instead, it is concocting other problems to divert the global sheeple’s attention. Such an approach might not work this time around! See the articles on page 34.“The gold standard alone makes the determination of money’s purchasing power independent of the ambitions and machinations of governments, of dictators, of political parties, and of pressure groups. The gold standard alone is what the nineteenth-century freedom-loving leaders (who championed representative government, civil liberties, and prosperity for all) called ‘sound money’.” Ludwig von Mises. Good Day!

COMMENT

The Morality of Fiat Money[Excerpted from chapter 13 of Guido Hülsmann's The Ethics of Money Production.]8. Some Spiritual Casualties of Fiat InflationFiat inflation constantly reduces the purchasing power of money. To some extent, it is possible for people to protect their savings against this trend, but this requires thorough financial knowledge, the time to constantly supervise one’s investments, and a good dose of luck. People who lack one of these ingredients are likely to lose a substantial part of their assets. The savings of a lifetime often vanish into thin air during the last few years spent in retirement. The consequence is despair and the eradication of moral and social standards. But it would be wrong to infer that inflation produces this effect mainly among the elderly. As one writer observed:These effects are “especially strong among the youth. They learn to live in the present and scorn those who try to teach them 'old-fashioned' morality and thrift” [emphasis added]. Inflation thereby encourages a mentality of immediate gratification that is plainly at variance with the discipline and eternal perspective required to exercise principles of biblical stewardship - such as long-term investment for the benefit of future generations.8Even those citizens who are blessed with the knowledge, time, and luck to protect the substance of their savings cannot evade inflation’s harmful impact, because they have to adopt habits that are at odds with moral and spiritual health. Inflation forces them to spend much more time thinking about their money than they otherwise would. We have noticed already that the old way for ordinary citizens to make savings was the accumulation of cash. Under fiat inflation this strategy is suicidal. They must invest in assets the value of which grows during the inflation; the most practical way to do this is to buy stocks and bonds. But this entails many hours spent on comparing and selecting appropriate issues. And it compels them to be ever watchful and concerned about their money for the rest of their lives. They need to follow the financial news and monitor the price quotations on the financial markets.Similarly, people will tend to prolong the phase of their life in which they strive to earn money. And they will place relatively greater emphasis on monetary returns than on any other criterion for choosing their profession. For example, some of those who would rather be inclined to gardening will nevertheless seek an industrial employment if the latter offers greater long-run monetary returns. And more people will accept employment far from home, if it allows them to earn a little additional money, than under a natural monetary system.The spiritual dimension of these inflation-induced habits seems obvious. Money and financial questions come to play an exaggerated role in the life of man. Inflation makes society materialistic. More and more people strive for money income at the expense of other things important for personal happiness. Inflation-induced geographical mobility artificially weakens family bonds and patriotic loyalty. Many of those who tend to be greedy, envious, and niggardly anyway fall prey to sin. Even those who are not so inclined by their natures will be exposed to temptations they would not otherwise have felt. And because the vagaries of the financial markets also provide a ready excuse for an excessively parsimonious use of one’s money, donations for charitable institutions decline.Then there is the fact that perennial inflation tends to deteriorate product quality. Every seller knows that it is difficult to sell the same physical product at higher prices than in previous years. But increasing money prices are unavoidable when the money supply is subject to relentless growth. So what do sellers do? In many cases the rescue comes through technological innovation, which allows a cheaper production of the product, thus neutralizing or even overcompensating the countervailing influence of inflation. This is for example the case with personal computers and other products made with large inputs of information technology. But in other industries, technological progress plays a much smaller role. Here the sellers confront the above-mentioned problem. They then fabricate an inferior product and sell it under the same name, along with the euphemisms that have become customary in commercial marketing. For example, they might offer their customers “light” coffee and “non-spicy” vegetables - which translates into thin coffee and vegetables that have lost any trace of flavor. Similar product deterioration can be observed in the construction business. Countries plagued by perennial inflation seem to have a greater share of houses and streets that are in constant need of repair than other countries.In such an environment, people develop a more than sloppy attitude toward their language. If everything is whatever it is called, then it is difficult to explain the difference between truth and lie. Inflation tempts people to lie about their products, and perennial inflation encourages the habit of routine lying. We have already pointed out that routine lying plays a great role in fractional-reserve banking, the basic institution of the fiat money system. Fiat inflation seems to spread this habit like a cancer over the rest of the economy.

By Jörg Guido Hülsmann

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Year 22, No. 1130 Sunday Aug. 2, 2020 Local News

Canal+ aims to join the pay-TV market by March next year


Canal + Group, a Paris based and one of the biggest global pay-TVs and that partnered with Ethiopian Bruh Entertainment is expected to be on air in March 2021 with local shows.In connection with the visit of President Emmanuel Macron in March 2019 the French TV company that is owned by Vivendi, an integrated content, media and communications group, signed a memorandum of understanding with Bruh Entertainment for the implementation of a distribution agreement for the commercialization of a pay-TV offer.Tewodros Abraham, owner of Bruh Entertainment, said that the pay-TV will commence operation in the beginning of the coming year.There are two pay TVs in Ethiopia, while they are not considered as a streaming of shows based in Ethiopia or incorporate with local languages, according to Tewodros.“We are undertaking the required preparation to commence Ethiopian shows with the pay TV channel,” he said.Early this week Eutelsat, a French satellite operator, and Canal+ have signed a multi-year, multi-transponder contract for Ku capacity on EUTELSAT 7C to support the launch by CANAL+ of a premium DTH platform in Ethiopia.“The deal signed this week with is very important, since they will provide dedicated platform for Ethiopia,” Tewodros said.The pay TV is expected to commence its operation with up to 50 channels and in the future that will be expanded to 80 channels.“We are looking at dedicated local shows with local contents,” he said adding “Ethiopian producers that might be engaged in movies, cooking channel, documentaries or talk show, should use this opportunity to use the platform.”Shows that might be related with education system or job creation, which may include relevant government stakeholders, will have a space at the pay-TV, according to the Ethiopian partner, “because our capacity is very wide.” “Currently we are engaged in discussion and also sign deals with local channels, movie production companies, and

dubbing on foreign movies to Amharic is also going,” Tewodros said.“Initially we are starting on Amharic but will expand with other local languages,” he added.The price is expected to start from 300 birr per month, while the decoder will be available with a reasonable price and will be produced in bulk.“Canal + have already partnered for the supply of the decoder that will be assembled in China,” he said.The operation will be full high definition and Tewodros argued that there is a capacity locally to come with the standard production and it is also supposed to grow significantly.“There are local channels who does have good capacity, while professionals are also available. When we started the operation they are encouraged to execute their skills, but still the sector should grow,” he said.Besides local channels professionally selected relevant international channels like news and documentary channels will have a spot at the pay-TV. Obviously since the company is from France some selected French language channels that have a potential for Ethiopian audience will also have part at Canal + TV, which is exclusively dedicated to Ethiopia. There are two pay TVs in Ethiopia, DSTV of the US and Star Times of China, but the Canal + pay TV is different because its platform is strictly focused for Ethiopia.The company discussed with government offices like Ministry of Culture and Tourism to keep and promote Ethiopian culture than heavily promote foreign culture. “We will do our best to promote Ethiopian culture and unity,” the Ethiopian partner said.Canal + have similar dedicated pay TV in Africa particularly in West Africa. The West African TV is different with European Canal + channels, but the language is French. “The Canal + Africa has given full attention for African programs, movies, sport and shows,” Tewodros explained. “In the meantime our strategy is the same with the west African trend, until the industry become strong and ample local content become available we may use foreign channels at the initial stage,” he said.The local industry and TV productions,

which include entertainment, educational, cultural, promoting products, history, should be growing as soon as possible, according to the owner of Bruh Entertainment.“The industry was not growing in the past because platforms were not available, but now we have facilitated the platform,” he says “we will discuss on contents and seal a deal with professionals, who have ideas, to come up with their production as per the standard, condition and time frame,” he added.To tap the potential the company also targets to support on development, capacity building, and resource supply. “Canal + mainly focus on training and capacity building in West Africa that I observed in Cote d’Ivoire, which has one million subscribers of Canal +,

and it will be also applied in Ethiopia,” Tewodros said.He said that they have a plan to get up to one million subscribers in the coming four years. Meanwhile Ethiopia has wide population their pay TV and number of subscription for foreign pay TVs is very small. Canal+ Group is the leading French audiovisual media group and a top player in the production of pay-TV. Through its subsidiary Studiocanal, the Group is also the European leader in the production and distribution of movies and TV series for international audiences.Canal + Group is not new for Ethiopian pay TV market. With its local representative Syscom Plc, it has been transmitting the pay TV, Canal + Horizons, starting from 1997.Teguest Yilma, Managing Director and Owner of Syscom Plc, reminded that several channels have been on Ethiopian air via Canal + Horizons. She said that most of the channels have been French language that were mainly preferred by francophone residents in Ethiopia including the foreign community. “Through time the group preferred to concentrate on other francophone African countries,” Teguest reminded how the pay TV left the country. Vivendi is an integrated content, media and communications group, which also own Universal Music Group that is engaged in recording music, music publishing and merchandising. It owns more than 50 labels covering all genres.Universal Music has also established Universal Music Africa that may help also promote Ethiopian music, according to Tewodros. Eutelsat is already the leading carrier of Ethiopian channels through its 7/8° West video neighborhood.

Tewodros Abraham

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Year 22, No. 1130 Sunday Aug. 2, 20204


Local News

By our staff reporter

The Ethiopian section of the SMLH-ONM, Société des Membres de la Légion d'Honneur and Ordre National du Merite, as part of their three-month food support project for disadvantaged students of Hizbawi Serawit School and their families, donated the last and third round assistance on Saturday August 1.The project that was launched on June 6th aims to benefit 100 students and their families in need of support from the school. To realize this project members of SMLH, Zemen Bank Labour Union, Icare ye Lycee LiJ, and other companies and individuals came together to contribute their part as their corporate social responsibilities. “Our association, SMLH-ONM has provided basic need support for 100 students and their families aiming to alleviate the challenges that they face in relation to the COVID 19 pandemic for the last two months,” said Teguest Yilma, President of SMLH-ONM Ethiopia. “Over 500 family members will be beneficiary of SMLH’s initiative,” Teguest explained saying “this is to encourage the students to focus on reading and studying as much as they can while they stay at home because of the pandemic.” She also thanked all those who supported the initiative. Students and their families received basic food items like teff, edible oil, pasta, flour and sanitary products. This will continue for another one month, until September the end of the rainy season and hopefully

school will resume, she said.For SMLH that is formed to strengthen cooperation and friendship between French and Ethiopian communities, providing support for Hizbawi Serawit School is not the first time; the association has also inaugurated a tap water and hygiene facilities for the students. Commander Pierre-Francois Ferri Navy- Military Advisor at the French Embassy said that France will always stand with Ethiopia. “France will assist in everything it can to support Ethiopia,” the Commander said during the event. These students were part of the Addis Ababa City Government school feeding initiative that provides breakfast and lunch to children who go to school, but

SMLH extends third and final round of support to Hizbawi Serawit School

since schools have been closed due to the pandemic, the program has been halted. Zerihun Korme, Yeka Sub City Woreda 2 Education Bureau Head also said that the community should stay vigilant about COVID 19. “The families and the students must be more careful in protecting themselves and others around them in these difficult times.” Several actions have been carried out by the members of the SMLH for the benefit of the Hizbawi Serawit School, in particular through educational projects. SMLH Ethiopia has supported the school in Addis Ababa which is located in a popular and historic sector north of the capital. Close to the French Embassy, this district, called "Farensaï", was reserved in the 1960s by emperor Haile Selassié for the settlement of the families of the combatants who participated in the first peacekeeping operations in Korea and Congo. The association of SMLH Ethiopia was formed in 2013 by the recipients of the French government’s award of the Legion of Honor and Ordre National du Merite in recognition of eminent services rendered to their country and the strengthening of Franco-Ethiopian bilateral relations. SMLH-ONM Ethiopia brings together the decorated of these two French national orders living in Ethiopia, both French and Ethiopian nationals. Since 2017 the section was joined by those honored with French ministerial awards, mainly academic awards in arts and literatures as well as agricultural merit, and maritime merit among others.

Over 500 family members will be beneficiary

of SMLH’s initiative

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Ethio telecom amassed 47.7 billion birr revenueSubscribers increases to 46.2 million

By Metasebia Teshome

The sole telecom service provider in the country Ethio telecom announced that its total service subscribers have reached 46.2 million showing an increase of 5.8 percent from the previous period. In the budget year of 2019/2020 Ethio telecom also amassed 47.7 billion birr revenue.According to Frehiwot Tamru, Chief Executive Officer of the company, aiming to achieve its strategic goal the company has conduct different reforms which enhance the service provider to harvest 47.7 billion birr which is 105 percent higher than the target and 31 percent increment from the previous year.According to Frehiwot, network expansion, project targeting to enhance customer experience and satisfaction, 4G/LTE full coverage in Addis Ababa and introduction of LTE advanced service in some parts of Addis Ababa, fixed broadband services with massive tariff reduction as well as offering 16 new and 25 revamped local and international products and services were the factors that helped it register the achievement.The CEO revealed that 147.7 million

USD was generated from international business, showing 50 percent increase from the last budget year.She further noted that 11.3 billion birr tax, 4 billion birr dividend and 10.2 billion birr (318.4 million USD) loan payment for projects implemented under vendor-financing modality were made during the period.She also said that five billion birr is paid as a commission to vendors that also help create employment across the nation. Frehiwot said Ethio telecom has contributed a total of 1.15 billion birr in kind, service and cash as part of its corporate social responsibility in area such as health, agriculture, environmental protection and beautification of cities.Infrastructure vandalism, security vulnerability, commercial power interruption, COVID-19 and telecom fraud were mentioned as the challenges in the budget year.Ethio telecom has 95 percent population coverage, 85.4 percent geographical and 46.1 percent density coverage nationwide. The number of Ethio-telecom’s customers has reached 46.2 million, showing a 5.8% growth compared to the previous year.


The Addis Ababa Chamber of Commerce and Sectoral Association (AACCSA) has tabled a five year policy input for the government to consider incorporating in its new development plan.Mesenbet Shenkute, President of AACCSA, announced that the inclusive policy recommendation titled ‘Towards the Creation of a Robust Private Sector’ is prepared under the government’s strategy which is giving priority for the private sector development.“The economic policy recommendation was done four months ago and was tabled to the Office of the Prime Minister and other relevant government offices in consideration for the private sector to get better attention under inclusive manner,” she said adding “ we hope all relevant bodies will use it, since it is considering coordinated economic policy.”The problems and challenges on the private sector activities have been identified under the document, according to the president of AACCSA. Getachew Regassa, Secretary of AACCSA,

said that meanwhile the development of policy will be the accountability of the government, the chamber considered itself responsible to be an instrument to provide support.“The major reason to develop this policy recommendation is that currently the country is under a transition period that needs support from non-governmental organs. Currently, the government is engaged on massive changes that the chamber needs to put its share in the upcoming strategy for the private sector, and the policy recommendation has also targeted to pressure the government for the benefit of the private sector,” Getachew said. “Besides focusing on challenges that occur under operation and bureaucracy as we had done in the past, the policy recommendation at the initial stage will have better contribution to address challenges at the grass root level,” he added.The policy recommendation has looked at the legal, policy and administration gaps and indicates directions and recommendations, according to the Secretary. “Sustainable solution have got priority in our document, meanwhile we have similarities with structural problem that

the government frequently stated as a major challenge for the country economic development,” he added.The document gives priority to eight strategic matters that are pillars to get tangible changes in the poverty reduction, private sector development and economic growth for the country.Shibeshi Bettemariam, Deputy Secretary for Advocacy and Innovation at AACCSA, adds that, the document comprised of 474 pages with two volumes will be an input for the government’s development plan.The policy plan work was started in November 2018 and was finalized six months ago. “Under this plan policy and institutional development recommendations that show the potential of the private sector economic development contribution for the nation are included,” Shibeshi said.

Access to finance, land, human capital, and technology; increasing trade that evaluates doing business, import and export; lowering public deficit and debt, digital economy and investment are the areas the policy plan covers. “The document has 135 policies and institutional development recommendations under key performance indicators with 60 measurements,” he says, “for instance under the pillar of lowering public deficit and debt we raised the formation of legal framework on illicit financing and remittance, indicate recommendations on tax administration, and corporate governance.”He said that some of the points mentioned on the chamber document have similarities with the government’s ten year prospective development plan that is currently under discussion and expected to be implemented in the coming decade with two- five year plans.

Chamber tables five year policy plan

Frehiwot Tamru

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Mesenbet Shenkute

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Local News

huge amount of finance from banks.

“The customs is focusing only on under invoicing because the priority for it is the revenue collection. Due to that the two bodies are going separately and become unable to look the overall economic and revenue impacts for the country that occurred in relation with over invoicing,” he said.“The two bodies should use each other’s information,” he added. It is an actual problem that has been stated in different studies, according to experts. The tax office and customs should look together the information and identify the over or under invoicing clearly to solve the problem and keep the benefit of the country first, they said. There are post clearance audit by the Customs Commission, which is under MoR, and desk audit by tax office, the two bodies should exchange their information to get clear image and tackle tax evasion.If the tax office get the information that the import of capital goods is over invoiced it will get a way to get the proper tax and revenue.The customs have huge database that can easily identify whether the imported goods are over or under invoiced that will help to collect proper tax and duty, according to experts.“The customs may focus on revenue earnings due to that it may not be

concerned when high price or over invoicing come, but it will identify the over and under invoice that can be used by the domestic tax office,” they explained. “The customs collection information is crucial for tax collection and vice versa due to that they have to give attention for it,” private company tax experts said.They said that due to the revenue office is not sharing the information with Customs Commission and only give attention for maximizing the tax collection, local investors have become a victim.“For the same capital goods foreign investors provide highly exaggerated invoice but meanwhile we come up with proper invoice that will not sound correct for the tax authority, that only give focus only on under invoice and will argue that our invoice is under the real price,” they said. “It has affected local investors, who are afraid the tax office might demand exaggerated taxes when it comes to desk audit,” they added.But if the tax office and customs share their information frequently the problem will be solved and even the tax office can get proper revenue from those who come up with over invoiced documents, according to experts. “Both offices are looking the situation under their sector interest and that should be changed,” Fekadu, who is an expert in the over and under invoicing at MoR, said. Experts said that over invoiced capital

Over invoicing affecting . . . Continued from page 1

ESLSE to start . . . Continued from page 1

have a capacity about 28,000 dwt. “This size of vessels are known as ‘supramax bulk carrier’ that are highly preferred for bulk carrier in the industry,” he says adding “they are profitable and we can even lease them for others, but at the same time we know the business and have now grabbed the fertilizer, coal and wheat business, due to that these vessels are very crucial for our operation.” According to the CEO, the new vessels will be different from the current properties. “The two vessels will focus for bulk carrier,” he asserted.About a decade ago ESLSE bought nine vessels including two tankers that it received in different time frames. The nine vessels consume USD 234 million and the major share was covered by Export Import (EXIM) Bank of China. Roba said that most of the loan has been paid, “so far over USD 190 million have been paid and the balance will be paid shortly.” “We settle the loan on biannual basis that is approximately USD 17 million for each,” he added. He said that the local portion of the loan has already been settled and the foreign exchange is at its final stage. The CEO is confident that his enterprise will not face a challenge to finance the brand new vessels that will be purchased in the near future.“Since we keep the payment schedule we showed our credit worthiness to our lenders,” he said.“We have a liquid asset and due to that the finance and guarantee issue will not be a problem. Of course we will use foreign finance to buy the new vessels and not need other warrantee to access the finance,” he explained.The two tankers, Hawassa and Bahir Dar, have about 42,000 dwt capacity and they are the first tankers for the operator. ESLSE also target to commence passenger transport with ferries. In the region there

goods that are mainly included under duty free scheme may not directly pay the customs duty, but when they started paying taxes after the holiday the depreciation is very high that is directly related with inflated costs, which narrowed the profit margin. “When the profit margin narrowed, these companies may not pay tax or sometimes declare losses,” Fekadu said. According to experts the implication is not only limited for government revenue but it is also related with banks. Banks are giving loans based on the invoice of capital goods that are over invoiced from the real value. In actual terms banks are approving high amount of money as a loan for the capital goods, which have small real value.“It may affect the banking industry if the businesses are closed because the actual price of the collateral is very small,” experts said.“We have seen investors come with old machines but accessed huge amount of money from banks that is not of real value with their assets, but they get the money only because they appear with over invoiced capital goods,” Daniel Getnet, Head of Dabe Investment Consulting and Conveyance PLC, a legal consultancy firm for businesses mainly for FDIs', told Capital.He said there are some companies who abuse the legal gaps in Ethiopia. “Mostly they are coming with phony documents

for their capital goods and supply of raw material, to abuse the tax system and get false values for their investment,” Daniel said.“On the other hand they are using two different suppliers one is their own, which is formed to issue over invoiced document, while they are buying the product from other suppliers,” he said how the illegal process is done. He advised that the government should form a body that follows corporate standard responsibility to closely follow the foreign investment. “Meanwhile there are arguments regarding this, there are countries follow the prudency of foreign investments,” he said.Experts also claimed that the dividend tax is also evaded since the profit is very limited because of artificially inflated costs.On the other hand foreign investors are using the over invoicing for capital fleet than using the legal divided flow.Experts said that officials change within short period at the ministry and that might be the reason to not to fully solve the gap.Fekadu said that the case has been identified by the ministry and different research papers have been done. “We have given professional opinion about the issue for MoR, due to that anybody who has a concern that might be the chamber or sector associations, can come up with their claim to initiate the case,” Fekadu said.

is a potential to commence passenger services with ferries. The price will be competitive than air transport, according to the CEO. The ferries are bound to take passengers from East Africa to the Middle East. The scheme is also included in the five year strategy. ESLSE established in the mid-1960s is the strongest vessel operators and is the only cross continent operator in the African continent. “We have cargo agents at 327 ports in the world, which is very big,” the CEO descried the capacity of his enterprise, “we retain in the market does not mean we have a fleet but we are engaged in consolidation with agents.”“We are using our network and buy other slots to transport cargos. Partly we are non vessel owning common carrier (NVOCC), which is an operator that may actually does not have vessel but operate in the business like DHL,” he explained.The enterprise is also engaged on West African market chartered service. “Recently the enterprise has transported a project cargo from China to Senegal. The business is encouraging and we will continue to operate,” the CEO concluded.

Roba Megersa

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One of our most important collective responsibilities is to protect front line health workers, who are at high risk. Forty-one African countries have reported nearly 14,000 health worker infections. In 16 countries which reported health worker infections over the past month, nearly a quarter recorded an increase in the past two weeks compared with the preceding

fortnight.Expanding the scale and quality of public health measures such as testing, contact tracing, isolation and care of patients remain central to the response, as well as preventing infection through handwashing, physical distancing and wearing of masks. Lifting of lockdowns that have helped to slow down the spread of COVID-19 should be

evidence-based, phased and targeted.Under-reporting of cases is a challenge as testing for COVID-19 in Africa remains low by global benchmarks, but capacity has expanded significantly. About 7.7 million tests have been performed since February. The number of tests performed per 10,000 people as of mid-July was below 100 in 43 countries out of the 54 assessed.

Pulses to be traded under ECXBy Muluken Yewondwossen

The coming of new pulses at the Ethiopian Commodity Exchange (ECX) is expected to make it uniform at the trading.The trading floor established in 2008 and started exclusive trading by coffee has disclosed that by this coming Ethiopian New Year it will add more pulses in the electronic trading floor.So far ECX is trading five commodities including sesame seeds and soybean, which joined the market lately. Last week ECX disclosed that it will commence the trading of red speckled beans/pinto beans and white pigeon pea, which are stated as a potential to generate more hard currency.Exporters told Capital that the products particularly the coming of red speckled beans/pinto beans, which has six varieties; red white, white red, white gray, creamy red, un-speckled creamy, and un-speckled yellow will create an opportunity to harmonize the beans market.

The coming of new products at ECX will also help to control the trading of white pea bean, according to exporters, who demand anonymity.“The beans and peas have potentials to expand. The trading will also help to uniform the pulse market,” the exporters said.“For instance traders that are engaged on illegal activity are buying white pea beans from primary market against the trading rule and claimed that the product is red speckled beans/pinto beans,” an exporter said adding, “now the pulse trading becomes uniform and exporters would not have a chance to abuse the system.”“Further more the market will be sustainable and determined by global market besides bypassing illegal brokers,” the exporters added.On the other hand the decision of Ministry of Trade and Industry to facilitate special window at ECX for local soybean users is also a result of strong control of the government to cut the contraband, according to the sector actors.

They said that illegal exporters were engaged on buying the product from primary market even though the product is exclusively traded at ECX for over two years. “The strong control of the government on the illegal activity forced the illegal actors to use to trade their soybean via ECX,” exporters said. Besides those local soybean users, mostly processers were also trying to abuse the scheme, according to exporters.“The illegal actors have been aggressively engaged on illegal activity and buying the product from primary market. Though the government issued a directive to enforce the trading at ECX, there were sabotages to paralyze the directive,” they added.The government tightens its control that pushed the illegal actors to look to trade via ECX, according to the sector experts. “That is the reason they asked the government to create a window at the ECX to return the product that they stored illegally,” exporters said.Now the ministry has given a grace period until September for illegally stored product to return at ECX warehouse via suppliers.


COVID-19 infections in Africa will exceed one million cases in the coming days as the pandemic surges in several hotspot countries. In a little more than three weeks, the number of cases on the continent almost doubled to 927,661, with 19,650 deaths.Overall, the pandemic is accelerating with the number of new cases increasing by 50% during the last 14 days compared with the previous fortnight. However, only five countries account for about 75% of the cumulative COVID-19 cases - they are Algeria, Egypt, Ghana, Nigeria and South Africa. South Africa alone accounts for around half of the continent's total cases. Deaths are also increasing. A total of 4,376 new deaths were recorded during the last 14 days, representing a 22% increase from the previous two weeks.Seven countries in sub-Saharan Africa which had imposed lockdowns and have now started easing them have experienced a 20% jump in cases over the past two weeks. Some countries such as the Republic of the Congo and Morocco have had to re-implement partial restrictions because of an increase in cases."As Africa approaches one million cases, the continent is at a pivotal point," said Dr Matshidiso Moeti, World Health Organization (WHO) Regional Director for Africa. "The virus has spilled out of major cities and spread into distant hinterlands. Countries need to keep apace and urgently decentralize their key response services. We can still stop COVID-19 from reaching full momentum, but the time to act is now."

Africa closes in on one million COVID-19 casesNew cases increase by 50% during the last 14 days

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Year 22, No. 1130 Sunday Aug. 2, 2020Advertisement

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Year 22, No. 1130 Sunday Aug. 2, 2020 Advertisement

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Local News

Rotary Ethiopia donates PPE’s, medical supplies

Nyala Insurance supports GERD by buying additional 12 million birr bond


Nyala Insurance S.C (NISCO) purchased an additional bond worth 12 million Birr to help finance the construction of the Grand Ethiopian Renaissance Dam (GERD). This comes after Ethiopia announced the completion of the first phase of filling the dam. Chief Executive Officer Nyala, Yared Molla during the ceremony held at the Ministry of Water, Irrigation and Energy, said that the company had purchased a total of 51.2 million Birr worth of bond in six rounds since the start of the construction.“Today’s bond is the 7th round of purchase that brings the total amount of contribution so far made by our company to over 63.2

million birr, and we will continue to support our project until the end,” Yared said. Expressing his joy over the successful completion of the first year filling of the GERD, the CEO called on all Ethiopians to continue their unreserved support to the realization of the dam as it is “the symbol of national unity and pride.”He has also affirmed his company’s readiness to further continue supporting the construction of the dam till its completion.Deputy Governor of National Bank of Ethiopia, Solomon Desta who attended the ceremony urged other financial institutions to take similar measures as purchase of bond is crucial to enhance the financial needs of GERD at this critical time. “Other financial institutions should follow suit of Nyala Insurance,” Solomon said.

Ethiopians have so far contributed over 13 billion birr for the dam, which is being constructed entirely with domestic funds. NISCO is one of the leading Insurance Companies in Ethiopia in terms of performance growth and financial position.It was established in 1995 to engage in general insurance business with a subscribed capital of 25 million birr and paid-up capital of 7 million birr. In 2005, NISCO turned into a composite insurer by adding life business and increasing its paid-up capital to 35 million birr. Currently its paid-up capital reached 416 million birr.In 2019, NISCO wrote 492 million birr of premium income and realized a gross profit of 184 million birr. Its shareholders’ equity reached 842 million birr while its total assets reached 2.1 billion birr.

in the target countries subsidizing the purchase of seeds and agrichemicals.Despite the public support, AGRA has provided no comprehensive evaluation or reporting on its impacts. “We find little evidence of widespread

progress on any of AGRA’s goals, which is striking given the high levels of government subsidies for technology adoption,” the researchers report. The paper documents slow productivity growth, no significant increases in food security or small-farmer incomes in the target countries, and


Rotary Ethiopia in collaboration with the Rotary Foundation of Rotary International, William Grant and Sons Brands Ltd, Swiss Club Addis Ababa and its global networks donated six million birr worth of Personal Protective Equipment (PPE) and medical supplies to the Ministry of Health as part of its continued support to combat COVID-19 pandemic.These contributions are mobilized by the Rotary clubs of Addis Ababa, Addis Ababa Bole, and Debre Berhan. The donations include essential PPE like scrubs, goggles, heavy-duty gloves, medical footwear, and equipment like dual-use oxygen concentrators, multi-parameter patient monitors, nasal cannula, and fingertip oximeters. “Most of these items are purchased from manufacturers and importers in the country to support the local business to continue providing the highly needed employment opportunities to our people during these difficult times,” reads a statement from Rotary Ethiopia. Four small and medium manufacturing

enterprises and at least five trading and distributing firms which have an estimated number of 360 employees were awarded the business. “The enormity of the challenges that must be tackled to combat the COVID-19 is requiring better organization, effective designing of our interventions, and a systemic approach to solutions, among others. The need for coordination with the target beneficiaries and national and global endeavors are of paramount importance to make deliveries relevant, quick, impactful, and sustainable,” further reads the statement sent to Capital.

“Rotary Ethiopia is determined to continue supporting our national effort in this fight against this pandemic as long as it takes. The endeavor is also part of Rotary’s long-standing commitment and dedication to serving our communities,” said Lia Tadesse (MD) Minister of Ministry of Health during the handing over ceremony. Rotary is a non-political, non-religious, and not-for-profit worldwide network of business and professional leaders that provides humanitarian services, encourages high ethical standards in all vocations, and

promotes goodwill and peace in the world under its motto of “Service above self.” It was established in 1905 and now operates in more than 220 countries organized in above 35,000 clubs with more than 1.2 million Rotarian members across the globe.Rotary in Ethiopia has been serving the communities since 1955. Currently, there are 21 Rotary clubs in the country. These clubs have daughter Rotaract clubs with members between the age of 18 - 30 and interact clubs with members between the ages of 12 to 18. At the moment, there are 15 Rotaract clubs and 20 Interact clubs in the country. With nearly 2000 members across these groups of volunteers, the Rotary movement is expanding fast all over the country. New clubs have been established, such as the Rotary Club of Goba, in Bale zone, the Rotary club of Qarsa in Arsi Zone, the Rotary club of Asella in Arsi zone of the Oromia regional state and the Rotary Club of Lalibela in the Amhara regional state. More clubs are under formation in all the regions of the country with lofty plans for expanding volunteerism, goodwill, and high ethical standards among the youth and adults all over the country.

New report slams Africa’s Green Revolution “failing on its own terms”


Fourteen years ago, the Bill and Melinda Gates and Rockefeller foundations launched the Alliance for a Green Revolution in Africa (AGRA) with the goal of bringing Africa its own Green Revolution in agricultural productivity. Armed with high-yield commercial seeds, fertilizers and pesticides, AGRA eventually set the goal to double productivity and incomes by 2020 for 30 million small-scale farming households while reducing food insecurity by half in 20 countries.According to a new report from a broad-based civil society alliance, based partly on new background paper, AGRA is “failing on its own terms.” The report states that there has been no productivity surge. “Many climate-resilient, nutritious crops have been displaced by the expansion in supported crops such as maize. Even where maize production has increased, incomes and food security have scarcely improved for AGRA’s supposed beneficiaries, small-scale farming households,” the report reads. The number of undernourished in AGRA’s 13 focus countries has increased 30% during the organization’s well-funded Green Revolution campaign, including Ethiopia."The results of the study are devastating for AGRA and the prophets of the Green Revolution," says Jan Urhahn, agricultural expert at the Rosa Luxemburg Stiftung, which funded the research and published on July 10, “False Promises: The Alliance for a Green Revolution in Africa (AGRA).”Moreover the report further states that massive investments spent promoting and subsidizing commercial seeds and agrichemicals across Africa have failed to fulfill their purpose of alleviating hunger and lifting small-scale farmers out of poverty, according to the paper. In pursuit of its vision, AGRA has collected nearly USD 1 billion in donations and disbursed USD 524 million, primarily in 13 African countries, on programs promoting the use of commercial seeds, chemical fertilizers and pesticides. This “Green Revolution” technology package is further supported by subsidies; Wise reports that African national governments have spent roughly USD 1 billion per year

worsening hunger. “The evidence suggests that AGRA is failing on its own terms,” the paper concludes. AGRA said it is “very disappointed” in the research. “Over the last 14 years, AGRA has achieved its successes, but has also learned a lot,” the group said in a statement. AGRA said the Tufts paper failed to meet “basic academic and professional standards of peer review and asking the subject to comment on the ‘findings,’” and accused of having “a history of writing unfounded allegations and uncorroborated reports about AGRA and its work.”

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በመሆኑም ተጫራቾች ለጨረታ ከመቅረባቸው በፊት ከዚህ በታች የተዘረዘሩትን ማሟላት ይጠበቅባቸዋል፡፡

1. ተጫራቾች የሚወዳደሩበትን አጠቃላይ ዋጋ 20% ለጨረታ ማስከበሪያ በባንክ በተረጋገጠ ሲ.ፒ.ኦ. ከመጫረቻ ሠነዱ ጋር አያይዘው በታሸገ ፖስታ ማቅረብ ይኖርባቸዋል፡፡

2. በጨረታው ለሚሸነፉ ተወዳዳሪዎች ያስያዙት ሲ.ፒ.ኦ. ውጤቱ እንደፀደቀ ይመለስላቸዋል፡፡3. ከላይ በተጠቀሱት ቦታዎች እናቀናት እቃዎቹንበአካልማየትይችላሉ፡፡4. ባንኩ የተሻለ መንገድ ካገኘ ጨረታውን በከፊልም ሆነበሙሉ የመሰረዝ መብቱ በህግየተጠበቀነው፡፡5. ተጫራቾች የሚገዙበት ዋጋ (ተጨማሪ እሴት ታክስን ሳያካትት) መሆንአለበት፡፡

ጨረታውን በተመለከተ ተጫራቾች ለማወቅ የሚፈልጉት ተጨማሪ መረጃ ካለ በስ.ቁ. 011-465-55-52/ 0114706065 ወይም 011-869-92-58 ደውሎ መጠየቅ የሚችሉ መሆኑን እንገልጻለን፡፡

ግሬስ መጋዘን፡- በአዲስ ሞጆ ዱቄት ፋብሪካ እና በኦይል ሊቢያ ነዳጅ ማደያ መሃል በሚያስገባው መንገድ የባቡር ሃዲዱን እንደተሻገሩ ግሬስ የቡና መጋዘን እየተባለ በሚጠራው መጋዘን ውስጥነው፡፡ነፋስ ስልክ መጋዘን፡- ዳሽንባንክ ንፋስ ስልክ ቅርንጫፍ የሚገኝበት ህንፃ፡፡

የጨረታ ማስታወቂያዳሸን ባንክ አ.ማ ከዚህ በታች የተዘረዘሩትን ያገለገሉ ቋሚ እቃዎች በጨረታ አወዳድሮ መሸጥ ይፈልጋል፡፡ ስለሆነም በጨረታው ለመሳተፍ ፍላጎት ያላችሁ ተጫራቾች ይህ ማስታወቂያ ከወጣበት ቀን ጀምሮ እስከ ነሐሴ15, 2012 ዓ.ም. ባሉት ተከታታይ 15 የስራ ቀናት እቃዎቹ በሚገኙበት ቦታ ከቀኑ 8፡00 እስከ 10፡00 እቃዎቹን ማየት ይቻላል፡፡ ተጫራቾች ለእያንዳንዱ የእቃ አይነት የሚገዙበትን ዋጋ በታሸገ ፖስታ ዳሸን ባንክ ቄራ ቅርንጫፍ ህንፃ ሁለተኛ ፎቅ ለዚሁ በተዘጋጀው የጨረታ ሳጥን ውስጥ እስከ ቀኑ 6፡00 ሰዓት ማስገባት አለባቸው፡፡ ጨረታው በእለቱ ከቀኑ 8፡30 ተጫራቾች ወይም ህጋዊ ወኪሎቻቸው በተገኙበት ቄራ በሚገኘው የባንኩ የንብረት አስተዳደር እና ስርጭት ክፍል ይከፈታል፡፡

S/.No Description of item U/M Quantity1 Adding Machine Pcs 502 System Unit Pcs 893 Monitor Pcs 864 Key Board Pcs 1305 Lap Top Pcs 26 Photocopy Machine Pcs 177 Photocopy Machine Xerox Pcs 108 EPSON printer Pcs 89 Tally Printer Pcs 4910 printer HP Laser Jet Pcs 2211 UV Light Pcs 712 Passbook printer Pcs 16

13 Note counting Machine teller Pcs 77

14 Note counting Machine Cashier Pcs 17

15 Type writer Manual Pcs 1116 Type writer Electrical Pcs 1117 Dollar Detecting Machine Pcs 2318 Scanner Pcs 1319 UPS 1500KVA Pcs 6620 UPS Batteries Pcs 3621 Power Stabilizer Pcs 522 Switch Pcs 4223 Filling Cabinet Four Drawer Pcs 6424 Blower Pcs 525 Generator Pcs 1126 Safe Box Pcs 5

27 Queue Numbering Board Pcs 728 Oak Table with drawer Pcs 20

29 Oak Table with drawer & without leg Pcs 35

30 Oak Drawer Pcs 54

31 Single pedestal Desk 1:40 without drawer Pcs 99

32 Storage Cabinet Pcs 9433 Guest Chair Pcs 5334 Swivel Chair Low Back Pcs 5635 Swivel Chair high Back Pcs 336 Counter Chair Pcs 8

37 Lobby guest Chair three Setter Pcs 11

38 Training Chair Pcs 1239 Standing Fun Pcs 1540 Brief Case Pcs 1541 Tape with speaker Pcs 142 Telephone apparatus Pcs 5043 Cycle Pcs 144 Rack Pcs 545 Vacuum Cleaner Pcs 4646 ATM Diebold Pcs 2947 ATM banquet Pcs 4148 ATM NCR Pcs 1449 ATM Globalist Pcs 2050 POS Machine Pcs 38551 Fire Extinguisher Pcs 1452 Fax Machine Pcs 39

S/.No Description of item U/M Quantity

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Year 22, No. 1130 Sunday Aug. 2, 2020Advertorial

tariff reduction and offering 16 new and 25 revamped local and international products and services. 147.7 Million USD foreign currency was generated from international business and scored 107% of the target; showing an increase of 50% from previous budget year. This achievement is made possible because of the new commercial and technical solutions deployed to prevent telecom fraud through establishing collaborations with our international partners in a consistent and in a manner that ensures mutual benefit. Mobile voice accounts for 49%of the total revenue while Data and Internet contributes 29%, International business shares 9%, Value Added Service accounts for 9.4% and the remaining 3.6% comes from other sources. During this period, we have paid 11.3 Billion ETB tax and 4 Billion ETB dividend, effected 10.2 Billion ETB, an equivalent of 318.4 Million USD payment for loan - for projects implemented under Vendor-financing modality. After effecting the above major and other payments, we have begun our current budget year with a positive cash position. During the performance period, our total

subscribers reached 46.2 million which is an increase of 5.8% from previous budget year. Mobile voice subscribers reached 44.5 Million, Data and Internet users 23.8 Million, Fixed Services 980K and Fixed Broadband subscribers reached 212.2 thousand. During the budget year major and multifaceted advancement was made on fixed broadband services along with tariff slash, the subscribers showed an increase of 135% from the previous budget year. As a result, telecom density has reached 46.1 %. Currently we have 16.5K indefinite and 19.9K definite term employees. To ensure sustainable business growth, various capacity building interventions were made during the budget year. As part of capacity building, we were able to provide training for 10,665 employees. Along with other interventions, employee engagement in strategy development & execution, work environment enhancement and safe & healthy working conditions, various compensation and benefits systems, enhancement of social relations by celebrating employee day throughout the company which has positively impacted working atmosphere. We have 249 thousand partners who distribute our

Ethio telecom commenced the budget year with the implementation of BRIDGE, the company's three years' strategic

plan along with the 2019/20 yearly plan to realize its aspiration to become a preferred telecom service provider among customers and partners. Aiming to achieve its strategic goals, our company conducted vast reform activities and advancements mainly focusing on enhancing customer experience and satisfaction through ensuring operational excellence; service availability, quality and affordability; effective resource utilization and enhancing financial capacity; building reputable brand and, enhancing capacity of its leadership and staff in strategy design and execution, empowerment and timely decision making. We have harvested a total of 47.7 Billion ETB revenue, which is 105.1 % of the target and 31.4% increment from the previous budget year. This outstanding achievement is scored due to network expansion, projects targeting to enhance customer experience and satisfaction, 4G/LTE full coverage in Addis Ababa and introduction of LTE advanced service in some parts of Addis, fixed broadband services with massive

Ethio telecom 2012 EFY (2019/20) Annual Business Performance

Summary Report This report covers performance period from 01 July to 30 June 2020

Revenue ETB47.7B

Foreign Currency $147.7m

Voice 49%

Data 29%VAS 9.4%

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Year 22, No. 1130 Sunday Aug. 2, 2020 Advertorial

EASTERN AFRICA POWER POOLAddress: P.O Box 100644, Addis-Ababa (Ethiopia) House 059, Wereda 02, Bole Sub City

TEL.: (251) 11 667 1669 | (251)11 667 1670, E-MAIL: EAPP EAPPOOL.ORG

SPECIFIC PROCUREMENT NOTICE (RE- ADVERTISED)Name of Project: Tanzania-Zambia Transmission Interconnector Project (P163752), Grant No.: D350 - Technical Assistance to Eastern Africa Power PoolContract Title: Supply and Installation of ICT Equipment Reference No: ET-EAPP-178315-GO-RFQ1. The Eastern Africa Power Pool (EAPP) has received financing from

the World Bank toward the cost of the Tanzania-Zambia Transmission Interconnector Project (IDA Grant: D350 — Technical Assistance to EAPP) and intends to apply part of the proceeds toward payments under the contract for Supply and Installation of ICT Equipment.

2. The Eastern Africa Power Pool now invites sealed Bids from eligible Bidders for Supply and Installation of ICT Equipment. Delivery location is Addis ababa, Ethiopia and delivery period is fourteen (14) business days from the date of contract signature.

3. Bidding will be conducted through national competitive procurement using a Request for Quotations (RFQ) as specified in the World Bank’s “Procurement Regulations for &F Borrowers” July 2016 revised November 2017 (“Procurement Regulations”), and is open to all eligible Bidders as defined in the Procurement Regulations. The RFQ consist of four (4) Lots and bidders may quote for any or all Lots.

Lot NO DESCRIPTION QUANTITY

1 Laptops and BackupsStandard Laptop (l0pcs); Dockable Laptop 1(1pc);Dockable Latpp 2 (l pc); Laptop Backups (12%s)

2 Network AccessoriesServer 5KVA UPS (lpc); 19” Rack Cabinet (l pc); LAN Switches (2pcs); Access Points (5pcs); 2GHZ Wireless AP Extenders (l0pcs); 5GHZ Wireless AP Extenders (3pcs); LAN Toolkit (1pc); Print Server (4pcs); Adaptors and Converters (1pc)

3 Printers, Copiers and Scanners Color Printer (2pcs); B/W Printer (2pcs); Copier B/W (2pcs); Network Scanner (2pcs)

4Analog PABX (Main Set, OperatorSet and 24 Extensions)

1 set

4. The quotations submitted by bidders shall be received by the EAPP on or before August 12, 2020, 15.00 hours local time (East Africa time). The envelopes should be clearly marked: “SUPPLY AND INSTALLATION OF ICT EQUIPMENT — DO NOT OPEN UNTIL BID OPENING DAY”.

5. Interested eligible bidders may obtain further information from Eastern Africa Power Pool, E-mail: [email protected] and copy to [email protected].

6. The bidding document in English may be obtained on the following link:

http://eappool.org/tenders- and-rfps/ or collected at the address below.7. Bids will be publicly opened in the presence of the Bidders’ designated

representatives and anyone who chooses to attend at the address below immediately after bid submission deadline.

8. The address referred to above is: Eastern Africa Power Pool, House 059, Wereda 02, Bole Sub City, P.O Box100644, Addis-Ababa, Ethiopia, Tel: +251 11 667 1669 | +25111 667 1670 | +251 942213012.

9. Late Bids will be rejected.

EASTERN AFRICA POWER POOL

products and services, totally we have created job and income opportunities for over 287 thousand citizens. At the heart of our company business is our commitment to Corporate Social Responsibility. Our CSR interventions continued to have a positive impact on society, environment, and all stakeholders. Our CSR projects focused in strengthening communities by targeting the fundamental drivers of long-term development such as education, health, agriculture, environmental protection, greening and beautification of cities. We have contributed in- kind, in service, and cash accounting a total of 1.15 Billion Birr in tackling the society's most pressing challenges that are aligned with our CSR strategic goals. This corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 2.1 Million ETB for various humanitarian activities. Also, their material, blood donation and in-service support has been enormous. Facing COVID-19 Pandemic, a global pandemic that substantially impacted human life and businesses, we have adopted various interventions. Our management and staff have been working to ensure connectivity as telecom service is critical to mitigate disruptions to economic and social activities of our country as the result of the Corona pandemic. We have also committed huge resource and attention in prevention of Covid-19, from donating One Hundred Million Birr (100 Million Birr) for the cause to the very advent of COVID-19, communication and awareness creation through the replacement of ring tone message with COVID-19 related messages and providing short codes for Federal and regional governments, providing free access to Ministry of Health and Ethiopian Public Health Institute web pages providing COVID-19 related

information, and availing free access to educational materials to ensure continuity amid of the pandemic, facilitating and supporting fund raising from within and abroad, financial contribution to fund Ministry of Innovation and Technology sponsored research on COVID-19, etc. Among the challenges we faced during the period, COVID -19, which has compromised expansion and enhancement projects implementation, customer acquisition, increasing operational costs and revenue impacts, fiber and copper cable vandalism, commercial power interruption, telecom fraud, security problems and delay in land acquisition for new sites deployment were among the main ones.

In summary, our company's performance in the budget year is generally outstanding and motivating while, particularly, remarkable given the challenges posed by the COVID-19. As this excellent achievement is only made possible because of the stamina and commitment of our leaders and employees to make Ethio telecom a preferred operator among customers and partners and their pledge to the goals and objectives set. The leadership and employees deserve great appreciation and gratitude. Finally, we would like to extend our most sincere gratitude to our customers, partners, and stakeholders for such outstanding performance.

Total Subscribers

46.2m

44.5Mmobile

23.8MData & Internet

980kFixed voice

212.2kFixed Broadband

14



DISCOURSE WITH DR. DESTA INVITATION TO TENDER(re-advertisement)

Tender Title: Supplies of Broadcasting Materials and Installation

Tender Reference #: T-SCI-ET-2020-009

SAVE THE CHILDREN, the world’s leading independent non-profit organization for children intends to procure various “Supplies of Broadcasting Materials and Installation” and hereby invites potential suppliers to submit a sealed tender for these services.Potential service providers may obtain the tender documents against payment of a non-refundable amount of ETB 100.00 from the Save the Children Country Office, Addis Ababa from August 03, 2020 to August 11, 2020 during working hours from the following Address:

Save the Children, Ethiopia Country Office, Addis AbabaNear Bisrate Gabriel Church, Supply Chain |

Procurement OfficeTel # 0113 728455/61 Ext. 388

Tenders submitted must be accompanied with:

¾ Renewed business license for the year 2012 E.C. VAT | TIN registration certificate;

¾ Bid Security in the name of “Save the Children International” amounting to ETB 50,000.00 in the form of CPO or bank guarantee valid at least for 3 months from the date of tender submission. (Cash and insurance bond are not accepted)

¾ Authorization to Import, Manufacture and/or Distribute products

¾ Company profile ¾ Documentary evidence in the form of detail specifications,

sketch, and/or drawings, verifying conformity of items to requirements

¾ Evidence of past performance record on similar works and other relevant credentials

¾ Completely filled SCI Price Schedule ¾ Warranty services ¾ Statement of Declaration in compliance to Save the

Children PoliciesTenders must be submitted in four (4) Sealed envelopes, bearing the bidder’s official seal, and clearly marked TECHININCAL and FINANCIAL “Original” and “Copy”, and must include the bidders’ name, and contact address, as well as the Tender title and Tender Reference number. Tenders must be submitted in the bid box prepared for this purpose at Save the Children, Ethiopia Country Office on August 12, 2020 before 02:00P.M. Save the Children Committee will open tender responses on the same day at 02:30 P.M. in the presence of bidders who choose to attend.NB: - Orientation section on requirements will be conducted on August 09, 2020, at SCI country office all interested bidder should attend the orientation section before submission the bid document.Save the Children reserves the right to accept or reject this bid, in partial, or in its entirety.

SONS OF ETHIOPIA & SON OF THE SOIL“Let’s build a new world together…now go get into good trouble…” Congressman John Miles Lewis.

ADMAS, a 1980’s Ethiopian band consisting of Abegasu Shiota, Henock Temesgen, Tewodros Aklilu and Yosef

Tesfaye, recorded “Sons of Ethiopia” in 1984; a long lost album now revived. Washington Post’s Chris Richards, calls the Frederiksberg Records re-release “…rare…precious and inimitable…sounds like nothing else. Admas specialized in paradox, generating exquisite new grooves that felt high-tech and low-budget, worldly and local, futuristic and nostalgic, funky and delicate…an expression of exploration and loss.” Admas was trained in music during the early Derg Era, but following the Red Terror, they fled to Washington DC, creating music to fit those devastating times. After 35 years in the music industry, working exclusively with artists on the cutting edge of social issues, I can say “Sons of Ethiopia” is a truly delightful discovery. My career in Artists Management began in New York City in 1985 so I am too familiar with the sounds of that period. The last track on the album, “Tez Alegn Yetintu,” is moving with its melodic filled two-minute intro followed by almost six minutes of keys and synthesized sounds including the good ole drum machine keeping copious timing. But if you close your eyes and listen carefully, recalling the rich history of Ethiopian music and maestros like Dr. Mulatu Astatke and crooners like Mahmood Ahmed, you can imagine a stage filled with the Ethiopian band of brothers, donning carefully coiffed afros, dressed in the best Habesha libs, pouring out their hearts – pain and hope, anger and love, despair and defiance – forcing you to sway and groove to their infectious rhythms. Needless to say, this precious find is a great addition to the discography of Ethiopian music, providing both pride and pause, available on youtube. All things considered, humanity’s pursuit of happiness has been expressed in many forms worldwide. However, I nominate African Americans for the prize of the broadest spectrum of expressions bringing attention to injustice. Artists like Billie Holiday, John Coltrane and painter Romare Bearden were part of the 1920’s cultural explosion historically known as the Harlem Renaissance. While 1968 Olympic “fists up” athletes Tommie Smith and John Carlos, and most recently NFL’s Colin Kapernick, taking a knee during the anthem, have ensured representation in sports spaces. Naturally African American preachers and politicians have also taken the helm with their voices including the right Reverend Martin Luther King Jr.

who preached non-violence from the pulpit of Atlanta’s Ebeneezer Baptist Church. Both King and Ebeneezer would come to the forefront this week as Congressman John Lewis, one of the “Big Six” organizers of the DC rally famous for the MLK “I Have a Dream” speech, was laid to rest at Ebeneezer. Eulogized by President Barak Obama with speeches from Presidents Bush and Clinton, it was a fitting farewell for the congressman dubbed the “Conscience of the Congress”.Lewis endured police beatings and numerous arrests from the age of 20, all part of plans and sacrifices leading to major changes in America’s racist laws and policies including the 1965 Voting Rights Act. He was a husband, father and mentor to many; a legend who also loved Africa. His visit to Ghana during the Year of Return also commemorating four hundred years of slavery in America was exactly one year ago with U.S. House Speaker Nancy Pelosi, by his side, condemning slavery as a “grave evil”. Honorable John Lewis’ last photo opp at age 80, was just a few hours after receiving chemo therapy for pancreatic cancer last month. Arms crossed, standing strong and steady on the newly named Black Lived Matter Plaza, feet from the Whitehouse and its current clueless occupant; a photo does say a thousand words. But in true Congressman Lewis form, who was always surrounded by young people, you can enjoy his presentation, more like a performance, dancing to “Happy” by Pharrel Williams in his office; recorded by his cajoling staff with the US flag, solemnly standing in the background, reminding us that even the most serious spaces dealing with the most confounding issues, find time to be happy for the blessings we do have. Lewis’ name was added to the Diaspora African Forum (DAF) Sankofa Wall in Accra Ghana, next to his wife’s name, Lillian Miles Lewis, placed there by the Congressman exactly a year ago. Ambassador Erieka Bennett, Head of DAF Mission, reminded the socially spaced attendees of all walks of life, “As we celebrate 2020 Emancipation Day, we also celebrate the life and legacy of a dear Brother, friend and fighter for equal rights who often urged us saying, “Let’s build a new world together…now go get into good trouble…” “.Dr. Desta Meghoo is a Jamaican born

Creative Consultant, Curator and cultural promoter based in Ethiopia

since 2005. She also serves as Liaison to the AU for the Ghana based,

Diaspora African Forum.

15



የኢትዮጵያ ልማት ባንክየእርሻ መሣሪያ መለዋወጫ ዕቃዎች ጨረታ ማስታወቂያ

የኢትዮጵያ ልማት ባንክ መነሻ ግምታቸው ብር 2,015,625.06/ሁለት ሚሊዮን አስራ አምስት ሺህ ስድስት መቶ ሃያ አምስት ብር ከ06/600/ የሆኑ እርሻ መሳሪያ መለዋወጫ ዕቃችን ባሉበት ሁኔታ በጨረታ አወዳድሮ መሸጥ ይፈልጋል፡፡

f ተጫራቾች የእርሻ መሣሪያ መለዋወጫ ዕቃዎች ዝርዝር የያዘውን የጨረታ ሰነድ የማይመለስ ብር 100.00 (አንድ መቶ ብር) በባንኩ አንደኛ ፎቅ /ኮርፖሬት ቅርንጫፍ/ በመክፈል ከባንኩ ሁለተኛ ታወር አምስተኛ ፎቅ ንብረትና ፋሲሊቲ ማኔጅመንት ዳይሬክቶሬት ቢሮ መውሰድ ይችላሉ፡፡

f ተጫራቾች የሚገዙበትን ዋጋ በመጥቀስና የታደሰ የነዋሪነት መታወቂያ በማያያዝ በሰም በታሸገ ኤንቨሎኘ በማድረግ ይህ ማስታወቂያ ከወጣ ከሶስተኛው ቀን ጀምሮ የኢትዮጵያ ልማት ባንክ ዋናው መስሪያ ቤት ሁለተኛ ታወር መግቢያ ለዚሁ ጨረታ በተዘጋጀው ሳጥን ውስጥ እስከ ነሐሴ 27 ቀን 2012 ዓ.ም ከቀኑ 8፡00 ሰዓት ድረስ ማስገባት ይችላሉ፡፡

f የጨረታ ሳጥኑ ነሐሴ 27 ቀን 2012 ዓ.ም ከቀኑ 8፡00 ታሽጐ ተጫራቾች ወይም ሕጋዊ ወኪሎቻቸው በተገኙበት ነሐሴ 27 ቀን 2012 ዓ.ም ከቀኑ 8፡05 ይከፈታል፡፡

f በጨረታው መሳተፍ የሚፈልግ በቅድሚያ የመነሻ ዋጋውን 25% (ሃያ አምስት በመቶ) በገንዘብ ክፍያ ማዘዣ /ሲፒኦ/ ማስያዝ አለበት፡፡

f አሸናፊው ያስያዘው ገንዘብ ከግዢው ዋጋ ጋር ሲታሰብለት ለተሸነፉት

ያስያዙት ገንዘብ ወዲያውኑ ይመለስላቸዋል፡፡ f የጨረታው አሸናፊ ማሸነፉ ከተገለፀበት ቀን ጀምሮ በሚቆጠር 10

ተከታታይ ቀናት የገዛበትን ገንዘብ ሙሉ በሙሉ ከፍሎ የእርሻ መሳሪያ መለዋወጫቻቹን መረከብ ይኖርበታል፡፡ ይህ ካልሆነ ጨረታው ተሰርዞ ለጨረታ ማስከበሪያ ያስያዘው ገንዘብ ሙሉ ለሙሉ ለባንኩ ገቢ ይሆናል፡፡

f ገዢው በገዛበት ዋጋ ላይ የተጨማሪ እሴት ታክስ 15% /አስራ አምስት በመቶ/ መክፈል ይጠበቅበታል፡፡

f ተጨማሪ መረጃ የኢትዮጵያ ልማት ባንክ 011-551-11-88 የውስጥ መስመር ቁጥር 386 ወይም በቀጥታ መስመር 0115506018 ደውሎ ማግኝት ይቻላል፡፡

f ተጫራቾች የእርሻ መሳሪያ መለዋወጫ ዕቃዎቹን መመልከት ከፈለጉ ቃሊቲ በሚገኘው የኢትዮጱያ ልማት ባንክ ዊርቱ መጋዘን ይህ ማስታወቂያ ከወጣበት ቀን ጀምሮ ዘወትር ረቡዕ ከቀኑ 8፡00 - 10፡00 ሰዓት በአካል በመገኘት መመልከት ይችላሉ፡፡

f ባንኩ ስለ መለዋወጫዎቹ አሻሻጥ የተሻለ መንገድ ካገኘ ጨረታውን በሉም ሆነ በከፊል የመሰረዝ መብቱ የተጠበቀ ነው፡፡

የኢትዮጵያ ልማት ባንክ

N e w s B r i e fIn

Termof the

DayDefinition

Usage Example

TERM LIFE INSURANCE

Jack Ma ANPI selects top 50 finalists of 2020 Jack Ma Foundation’s Africa Netpreneur Prize Initiative (ANPI) selects Top 50 Finalists of 2020 “Africa’s Business Heroes” Competition. Top 50 finalists were selected from over 22,000 applications across all 54 African nations representing 21 countries in the continent. Half of the finalists are female.Finalists are engaged in 18 sectors like agriculture, AI, e-commerce, fashion, healthcare, renewable energy and ICT.The fifty entrepreneurs will continue their journey in the competition, for a chance to become one of the ten entrepreneurs that will compete in the grand finale later this year.They will advance to the next round of selection and will participate in an exclusive virtual boot camp on July 28.

(Press Release)

PM, political parties agree to continue dialogue on national issuesPrime Minister Abiy Ahmed and political parties have discussed various issues of notational interests including development endeavors and peace and security.The Premier and the Parties have agreed to continue discussion on various national issues in platforms that will bring political parties together, with an upcoming dialogue platform on ‘National Consensus.’Agreement was reached to ensure that the upcoming discussions on national consensus

will be based on presentation of study papers, reflecting international best practices and national historical perspectives.Political parties expressed their support for the progress being made related to the Grand Ethiopian Renaissance Dam and admonished internal forces colluding with external elements to sabotage efforts being undertaken.Leaders of political parties also expressed support for the government’s measures undertaken and efforts to mitigate the spread the coronavirus pandemic.They also raised concerns of unconstitutional unilateral actions being undertaken by the Tigray regional government to hold regional level elections, in violation of the country’s constitutional order and called for enforcement of rule of law for actions being taken against the constitution.They also extended support for the supremacy of maintaining rule of law and indicated the need to check with in government structures for extremists and remnants of the previous order that are working against the reforms.Parties stressed the need to ensure the rule of law and take measures to redress the past unjust practices within law enforcement and judicial processes and institutional setups.In his responses, Prime Minister Abiy Ahmed expressed the importance of peaceful engagement, the value of open idea sharing and showing respect to one another in the political discourse.“Peaceful engagement, open and respectful discussions amongst political leaders are essential for our country to move forward on a stable and progressive path to prosperity.” the Prime Minister noted.We will continue to strengthen institutional

building efforts, while internally clearing the government structure of those sabotaging reforms.Abiy said the government is committed to upholding the rule of law, without discriminating between government bodies, ruling party leaders or members of political parties and hold accountable all that transgress the laws of the land.“Strength rests in ideas and not as how of muscles”, he emphasized.

(Press Release)

University Of Huddersfield designs a project to preserve Ethiopian Wild CoffeeUniversity of Huddersfield of United Kingdom has designed a long-term project to preserve Ethiopian Wild Coffee.The long – term project designed by the university, in partnership with the Ethio-Wetlands and Natural Resources Association (EWNRA) is aimed to create productive ecosystems that improve living standards for local people and conserve biodiversity.A researcher in Business Management College at the University, Professor Adrian Wood has designed a long-term project to improve prospects for the future via a sustainable development initiative benefiting coffee farmers in Ethiopia.“The real world is where we do action research by working with communities and testing new arrangements to manage resources,” says Adrian.“We work with a local partner organization which recruits Ethiopian experts who, once trained, go out into the forest communities

A life insurance policy which provides a stated benefit upon the holder's death, provided that the death occurs within a certain specified time period. However, the policy does not provide any returns beyond the stated benefit, unlike an insurance policy which allows investors to share in returns from the insurance company's investment portfolio.

Unfortunately, Rosa's family received no monetary support after her death because the incident fell outside of her term life insurance.

to work with farmers and government officials.”Ethiopia’s wild forest coffee plants are a gene bank for the world, but are also provide a valuable income for local farmers.” the professor noted.The project is to be funded by the government of the United Kingdom.“The project will further enable local people, researchers and government protect coffee forests in Ethiopia for both environmental and economic benefits,” Professor Adrian added.

(FBC)

16



17



Alazar Kebede

Geopolitical rivalry, and the reasons that sustain it, has not stopped with coronavirus. Depending on its depth and

duration, the crisis could lead to a more cooperative or a more divided world. Or it could lead to ongoing tension between these two alternatives for an indefinite period. Here are some core tenets of the current geopolitical environment: In absolute terms all states or groups of states are going to emerge weakened from this crisis. Andres Ortega, Senior Research fellow at the Elcano Royal Institute in Spain stated that the world may witness greater or lesser geopolitical rivalry, but based on weaker powers. This could possibly result in temptations to overreach.However, they come along with reduced abilities to act upon them. The UN has been completely absent during the crisis. Only a restoration of trust among the great powers will be capable of establishing the centrality of the UN Security Council. The WHO has proved inadequate. A much better equipped global health system is needed. The G20 worked in 2018 because there was United States, British and French leadership. Andres Ortega noted that now, with the Saudis in the chair not so much. At the present time, the G20 is being reduced to a framework lacking genuine capacity for coordination. The existing structures do not work. Here are some of the most likely structural developments: Acceleration of the process of de-Westernization. This was already underway owing to the rise of the East, which could, nonetheless, be slowed down, although not reversed by the crisis, as well as because of the internal divisions within the West. One of the intriguing questions: Will we become more “Asiatic” in terms of a general mindset, and therefore more community-minded and less individualistic?According to Andres Ortega, the decline of Europe has been described for a long, long time. Currently, there are even real concerns about the collapse of the EU if it is not able to react in a concerted fashion post-COVID 19. Conversely, the reality shock of, and the pressures from, the COVID 19 crisis may be strong enough to bring about new economic and geopolitical progress towards European integration. During the pandemic, United States global leadership has been completely absent, in marked contrast to the Obama administration’s reaction to the Ebola epidemic. One factor that will weigh decisively on scenarios over the medium term is whether President Donald Trump is re-elected in November.Alexei Bayer, a New York based Economic Analyst stressed that a Democrat such as Joe Biden in the White House from January - likely with a female Vice President who could replace him at any time, if needed - could drive a more multilateral approach.

That would imply more attention being given to the importance of allies to the United States, while the United States distancing to Russia and China would be maintained. Alexei Bayer further noted that, the United States Chinese rivalry will continue. This rivalry will become a structural factor in the new world order, especially with regard to the struggle for technological and ideological domination. China, following its management of the health crisis, has seen an opportunity to bolster its international image and utility. However, as more becomes known about what actually happened with the outbreak, China’s currently rather good image may change. In addition, China has major internal economic and social problems, which may undermine the financial capabilities it has earmarked for some of its geopolitical instruments, such as the Belt and Road Initiative. Even so, the world’s center of gravity will continue shifting towards the East, including in ideological terms.Frank Vogl, Co-founder of Transparency International and author of “Waging War on Corruption: Inside the Movement Fighting the Abuse of Power” stated that there are many other pressing issues to be dealt with. On most of them, trendlines are not moving in a positive direction. For example, the need to prioritize national aid for the underprivileged will reduce development aid even further and also cast even greater doubt on the attainment of the 2030 Sustainable Development Goals. And, of course, we are back at a time where countries only a short while ago being deemed as emerging may well be submerging. That isn’t just true for Africa and Latin America. Due to the steep fall in the oil price, Russia faces severe problems. Andres Ortega adamantly argued that there will be three scenarios for the path ahead. Amidst this convoluted and heavily burdened global landscape, let me set out three illustrative examples as base scenarios. In doing that, I am fully aware of the dangers of simplification. But one way or another, we need to attempt to get a grasp of a reality that is enormously complex.The first scenario is “Each for himself”. Andres Ortega stated that the United States, the self-ascribed richest country on earth, has already reached a staggeringly high unemployment levels. But it certainly isn’t just there that the lure of deglobalization (“my country first”) is offered up as a way out. Social unrest can further strengthen the populists and authoritarian regimes. Presumably well-established democracies will possibly have to contend with the collapse of the middle classes. If not global chaos, the forces of de-Westernization and de-Europeanization will find further fuel. The second scenario is “Collective international intelligence”. According to Andres Ortega, this is the rosy scenario.

GEOPOLITICSThe post-COVID 19

While the health crisis persists over the mid-long term, the spirit and logic of real international cooperation kicks in, both in the fight against the virus and in the recovery from the economic crisis. The G20 provide useful fiscal stimulus measures and there are moves toward a global health system. There is a gentle reform of capitalism, providing for a greater role for the public sector. Social protests are limited thanks to direct aid and lines of credit for companies. Thus, there is limited de-globalization. We even see greater European integration, with the financial and political institutions working in the same direction. Trust in governments recovers. Geopolitical confrontation between the United States and China, and with Russia, is considerably lowered. At times, it seems as if the spirit of a single humanity could thrive. The third scenario is “Step by step muddling through”. Andres Ortega noted that here is the middle scenario: The crisis persists over

the short-medium term. There is a degree of international cooperation in the healthcare field, but there is no coordination in the fiscal-economic realm. The economy in the EU as a whole starts to recover slowly, but it does not revert to its position prior to the crisis, remaining for a time in depression. Social protests rise due to the high levels of unemployment which show no sign of abating, but the system does not collapse. While there are localized coronavirus events, we do not see a reactivation of global flows. What we see is more nationalism and protectionism. The EU remains half-built. The European Central Bank (ECB), the European Investment Bank (EIB) and the Commission all function, but the European Council does not succeed in coordinating itself and acting in an integrated way on the joint fiscal stimulus issue. It is clear that the second scenario is the most advantageous, while the first is the least advantageous. The likely outcome of a “new normality” is a mix.

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Year 22, No. 1130 Sunday Aug. 2, 2020Advertorial

As an emerging African power, Morocco has given more attention to its partnership with Africa, especially through initiatives in South-South

Cooperation. In this respect, Morocco, being an African reference in many development fields, shares with African countries knowledge, know-how, experiences and lessons learned, further contributing to achieving sustainable development and particularly food security and human development in Africa.In this respect, Morocco has made South-South cooperation a driver for the emergence of an ambitious Africa, confident in its potential.Cooperation between Morocco and Ethiopia, since His Majesty’s Visit to Ethiopia in November 2016, at an all-time high and the bilateral relationship going from strength to strength, in many fields, within a win-win partnership.His Majesty’s 2016 Visit to Ethiopia was a historic moment in the bilateral relations of the two countries. This Visit allowed the signature of 12 Agreements and gave a new dynamic to the bilateral cooperation between Morocco and Ethiopia.

Morocco and Ethiopia: Sharing benefits through win-win economic partnership: The tradition of friendship and fruitful cooperation linking Morocco and Ethiopia is underlined by increasing visits exchanges of officials, which confirms the common wish to further reinforce ties between our two countries

so as to give a further impetus to our already existing cooperation. Morocco is aiming at enhancing bilateral economic cooperation and attract more Moroccan investors to Ethiopia.Morocco is pleased of the signature of the MoU to set a factory for fertilizers production, named Dire Dawa Fertilizer Complex. The plant, which will soon go operational, is to help Ethiopia reach self-sufficiency in fertilizer production, with prospects of investing in its potential for exportation. In addition to the OCP project, Morocco has conducted, via the OCP office in Addis Ababa, a soil fertility mapping, to figure out formula for customized fertilizers, in partnership with the Ministry of Agriculture & Natural Resources and the Agricultural Transformation Agency. In addition to that, the fields of renewable energy and logistics, etc., in which the Kingdom of Morocco has accumulated a huge expertise, are also set to boost bilateral ties between the two countries to illustrate an African model in the South-South cooperation. In this respect, and following the Agreements signed in 2016, the Moroccan Agency for Sustainable Energy (Masen), in the energy sector, and Tanger Med (first container port in Africa), in logistics, are sharing the Moroccan expertise with their Ethiopian counterparts. In terms of investment, the interest of Moroccan investors in the Ethiopian market in increasing. This includes investments by Anwar Invest Group and Holmarcom Group, the country’s

top investors. Many other company are in the study phase, such as Saham holding Group, a panafrican investor of reference. Business relations between the two countries witnessed also the organization of two business forums (Addis Ababa, November 2016 and Rabat, April 2017). Morocco also participated in October 2017, as guest of honor at the "Addis Ababa International Fair” with the organization of B to B.Ethiopia has been selected as a guest of honor in the Africa Development Forum, which was organized in Casablanca, Morocco, on 15 and 16 March 2019. Considered as one the most important investment platform in Africa, this Forum has witnessed the participation a very important delegation, led by His Excellency Dr. Aklilu Hailemichael, State Minister for Business Diplomacy and Diaspora. Ethiopia has also participated, for the first time and with an important delegation, including public actors and private sector, in the 14th Edition of the International Agriculture Fair, held in Morocco, from 16 to 21 April 2019. Especially in the economic field, the reforms in Ethiopia are encouraging our private sector to settle their business in Ethiopia, which is nowadays attracting more and more the attention of the Moroccan companies. Ethiopia also provides a very attractive market and its Government’s policy of reforms is creating conditions to favor economic development, including through more foreign investment.

SOUTH-SOUTH COOPERATION MOROCCO, A STRATEGIC PARTNER IN THE AFRICAN CONTINENT

King Mohammed VI and former Prime Minister Haile Mariam Dessalegn attend the launching ceremony of a project to build a world-class integrated platform for fertilizer production in Ethiopia.

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Year 22, No. 1130 Sunday Aug. 2, 2020 Advertorial

Empowering women in the core of the bilateral relations: Among others, women economic empowerment, etc., in which the Kingdom of Morocco has accumulated a huge expertise, is set to boost bilateral ties between the two countries to illustrate an African model in the South-South cooperation. In this respect, Morocco is working to enhance its collaboration with Ethiopia in field of women economic empowerment. In this respect, Morocco has organized, on 03-04 December 2020, in collaboration with the Center for African Women Economic Empowerment (CAWEE), the First Women Continental Event, under the theme “Boosting Intra-African Trade: Women Taking The Lead”, which witnessed the participation of 08 Moroccan Women Cooperatives. The inauguration of this event was honored by the presence of Her Excellency Mrs. Sahle-Work Zewde, President of the Federal Democratic Republic of Ethiopia, and His Excellency Mr. Moussa Faki Mahamat, Chairperson of the African Union Commission. Moreover, a women Moroccan delegation, led by the Vice-president of the National Union of Women of Morocco (UNFM) has also paid a visit to Addis Ababa from 27-31 January 2020. The UNFM is Chaired by Her Royal Highness Princess Lalla Meryem and considered as the oldest and largest women organization in Morocco.An Agreement was also signed between the Addis Ababa Women Entrepreneurs Association and UNFM in order to share experience and know-how in field of women economic empowerment.

Education and capacity building, a field of common interest: Morocco, considering the benefits of capacity building in development, has raised the quota of scholarships granted to the Ethiopian authorities to 50 places for the academic year of 2019/2020.It is to be mentioned that Morocco is a welcoming land for students, especially those from sub-Saharan countries. For the current academic year, they represent 85% of 20,500 foreign students enrolled in Moroccan institutions. Morocco is also building in Addis Ababa a Water Management Institute, which is going to help in capacity and skills building in this field.

Geographically far, Morocco and Ethiopia share culture and values:Taking the geographical distance between Morocco and Ethiopia into consideration, anyone can assume lack of common values in both countries. But, there are core values and cultural similarities in common.Morocco and Ethiopia are both lands of tolerance and coexistence between peoples and religions.Since the appointment as an Ambassador of His Majesty to Ethiopia, I have realized, in the daily life situation, that we have core values in common that are related to our identities, civilizations, history, tolerance between religions, coexistence, firm and strong determination to move forward, and success stories in development.The other point, both countries have in common cultures and traditions much similar with the Ethiopians. For instance, in Morocco there is a kind of music and dance very similar to the Ethiopian ones. Moroccan music uses the instrument that is very famous in Ethiopia which is Masinko.Both sides are encouraging the participation of the two countries in the events held in Ethiopia and Morocco in order to reinforce the cultural bilateral ties.

In this regard, we witnessed the participation of Fandeka Group in Timitar international Festival, held in Morocco in June 2019. Later in November 2019, the same Ethiopian music group has participated in the “Visa For Music” festival in Morocco and its Fandeka Group Director was awarded on this occasion. Furthermore, one famous traditional Moroccan group visited Ethiopia, on the occasion of the reception organized to celebrate the National Day of Morocco in July 2019. The next will be full of cultural exchange activities between the two countries due to the existing potential in this respect.

Two countries are looking for consolidating this very promising partnership:We have a great deal to look forward and seize the shared willingness to boost bilateral trade ties and benefit from the huge opportunities to even greater cooperation between Morocco and Ethiopia.

Morocco, as Ethiopia, is a land of tolerance and enjoys a long-lasting stability and development. Ethiopian are welcome to discover the Moroccan culture and see how developed is Morocco. They are also invited to visit the most attractive touristic country in the world and enjoy discovering the old civilization and the tourist attractions in Morocco.

COVID-19, insightful solidarity experience from Morocco in fighting the Pandemic:Regarding the COVID-19 Pandemic fighting and thanks to smart Vision of His Majesty the King Mohammed VI, Morocco witnessed an exemplary burst of solidarity at both national and African level. At the national level, the Kingdom adopted a series of measures based on a preventive and proactive approach. Public authorities have been highly mobilized to provide support to the populations most affected by the slowdown in economic activity, in particular through the Special

Fund launched by His Majesty King Mohammed VI, a Royal initiative which has aroused a great surge of solidarity in the country.At the African level, His Majesty King Mohammed VI, gave his very high Instructions for sending Moroccan made medical aid to 15 African countries. The aid is intended to provide protective medical equipment to support the brotherly African countries in their efforts to fight the COVID-19 pandemic. This solidarity action is part of the implementation of the Initiative launched by His Majesty the King, on April 13, 2020, with His Excellency Mr. Alassane Dramane Ouattara, President of the Republic of Ivory Coast, and, His Excellency Mr. Macky Sall, President of the Republic of Senegal, to share experiences and good practices and establish an operational framework in order to support African efforts in the pandemic management.

Nezha Alaoui M’hamdi Ambassador of Morocco to Ethiopia and Djibouti

(L) H.E Nezha Alaoui M’hamdi Ambassador of Morocco to Ethiopia and Djibouti, H.E Moussa Faki Mahamat AU Chairperson, H.E Sahle Work Zewde FDRE President, and Faycal Benameur, OCP Ethiopia Director during the inauguration of the first edition of the women economic forum.

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I N T E R V I E W

What key messages does your newly released report on COVID-19 and micro, small and medium-sized enterprises (MSMEs) convey?

The first is that MSMEs matter, and they must be at the center of any post-pandemic recovery effort. Second, there is a disruption of the global supplies that these MSMEs are a part of. The third message is that, going forward, we need to think carefully about how we support MSMEs, making sure we push in a direction of more resilient value chains that can withstand disruptions in the future.

The report states that MSMEs, especially in poor countries, are disproportionately affected by the pandemic. Why is this the case?

Poor countries face huge economic challenges. The pandemic compounded an already bad situation. For years, these countries have cried out for assistance to build infrastructure that supports economic development. In these countries, businesses are relatively small and cannot access finance. Some of these countries are landlocked and therefore the cost of doing business is much higher than in the others.

The Africa Union’s Silencing the Guns 2020 campaign, if successful, could strengthen countries’ resilience in recovery. Is that correct?Absolutely. If we could have a situation where peace reigns in countries, that would be an opportunity to

consolidate development efforts.

Your report paints a gloomy picture of the situation of MSMEs in Africa. For example, one in five small firms would be bankrupt within five months and $2.4 billion worth of exports is expected to be lost this year. Any good news at all?

You're right. We should not underestimate the impact of COVID-19 on countries. But I think there is a glimmer of hope. The current situation presents an opportunity to reflect on what to do going forward to enable MSMEs become more resilient. There are potential opportunities.First is the possibility for countries and companies to start innovating, because small enterprises tend to be agile and able to adapt. For example, some companies we are working with are able to conduct e-commerce and have survived. So, innovation is a possibility in terms of existing value chains or in doing something completely new.Second, we have an opportunity to rethink how we develop more resilient value chains that can accommodate future difficult situations.Third is to explore more sustainable production options that, in the long term, are cheaper and environmentally friendly.The final point is, there is an opportunity for countries to consider their product range. Many

countries depend on a single or a few commodities. They could now look at a broader product range as well as diversification of markets. Africa can look at the opportunities that come with the African Continental Free Trade Area (AFCFTA) in terms of value add, within the continent, even as countries look at the global markets.

Many people believe that African youth can capably lead the innovation charge. What are your views on this?

I agree. This is something we have observed from our work with young people in Africa. If you look at some of the sectors where the shift has occurred, the digital side of things for example, it's the youth who are involved, and they are pushing the trend and showing their ability. Also, the youth tend to think outside the box and can reposition themselves quickly. We must give them priority. They are the future and we cannot leave them behind.

Your report offers a 15-point plan of action. How do you ensure that your recommendations are implemented by the MSMEs, the business support organizations and the various governments?

The action plan provides some guidelines in terms of what the three stakeholder groups should be looking at, that is the immediate steps they can take.

Dorothy Tembo is the acting Executive Director of the International Trade Centre, (ITC) a joint agency of the United Nations and the World Trade Organization. In June, the ITC launched a report titled “COVID-19: The Great Lockdown and its Impact on Small Business.” In an interview with Africa Renewal, Tembo discusses the report, the role of women and youth in post-pandemic recovery in Africa, among other topics. Excerpts;

Dorothy Tembo is the acting Executive Director of the International Trade Centre, (ITC) a joint agency of the United Nations and the World Trade Organization. In June, the ITC launched a report titled “COVID-19: The Great Lockdown and its Impact on Small Business.” In an interview with Africa Renewal, Tembo discusses the report, the role of women and youth in post-pandemic recovery in Africa, among other topics. Excerpts;

Small businesses in Africa must innovate to survive COVID-19

Small businesses in Africa must innovate to survive COVID-19

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INVITATION TO BIDCenters for International Programs Inc (CIP) would like to invite capable bidders for the supply of the following medical equipment :-

No Specification Quantity

1

Video Colposcopy

Power input: accepts 220 Volt.Picture quality: high Definition, more than or equal to 2 M pixels (WHO recommendation), 1x - 40x zoom magnificationExtra-bright: multi-point LED light source, Ultra bright visualization, Long life cycleErgonomic design: allows to conduct hands free procedures (e.g. LEEP and thermal ablation treatment) at the same time, A stand with a rolling base and swing armsBuilt-in video capability: compatible with any computers, LED TVs connected with HDMI or VGA wire display; Hence no additional monitorAdditional qualities: Ultra-fast auto-focus technology, Manual focus option, Image freeze button, Green light filter buttonData management software: compatible data management software with desktopWarranty: ensure warranty at least for two yearsNB: with operating manual and preventive maintenance video in English

6 pcs

2Thermal ablation machine

Portable and light weight design: dimension and weight: Width 4 cm, height 20 cm and weight 240 gmProbes and tips: exchangeable probes that heat quickly (8 seconds) with Multiple tips with different sizes (16 mm flat, 19 mm pointed tips and 25 mm pointed tips), Autoclavable.Automated procedure timing: with visual and auditable indication, no external watch and timer requiredLED illumination: light source to visualize cervixChoice of power source: battery powered with rechargeable battery which accepts 220 volt (with recharging apparatus),Activation: membrane switch functions, On /off control button, Blue timing light and yellow low battery light, Audible indicatorOperating conditions: ambient temperature (at least 10-40oc), Relative humidity: (0-80% non-condensing)Handle: Ergonomically designedAdditional Features: fast thermal ablation (20 sec and 100oC default), has heat protection and can undergo high level disinfectionWarranty: ensure warranty at least for two years

200 pcs

Bids must be received by CIP at address specified here below not later than 10:00am August 7, 2020.

Centers for International Programs Inc.Kirkos Sub City, Kebele 05/06/07 House no. 021 (Debrezeit Road)

Tel: 011-4674476Po. Box: 5566, Addis Abba

CIP reserves the right to accept or reject the bid, at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders or any obligation to inform the affected bidder or bidders of the grounds for the CIP’s action.

These guidelines were drawn from our engagement with different companies in different countries. And the guidelines speak to the core issues that are affecting these countries.Countries see the relevance of what we're doing. They want to address the challenges they are facing. The ITC and others ensure that when countries decide to implement our recommendations, that we work with them to provide the necessary technical assistance or any required handholding.

Women constitute a huge percentage of Africans engaged in informal trade. Given that women are disproportionately affected by COVID-19, is it reasonable to suggest that they be given priority in any recovery assistance?

Absolutely, and not only because of COVID-19. Women's economic participation has been very limited. In most cases, women are not very engaged or allowed to participate in business. Even when they can participate, they're likely workers and when they own a business, they are small operations that cannot grow because of various reasons.Women’s businesses are likely to be closed as a result of the pandemic; therefore, any form of financial assistance to companies must consider the plight of women or be viewed through the gender lens. The ITC has designed a women’s empowerment programme called SheTrades under which we aim to connect three million women to markets. Even now, women are unable to get the necessary information to access the resources being provided within the COVID-19 context.Somebody told me a very interesting story about a border in southern Africa. At that border, two lines were formed: one for males and another line for females. The line for the males was cleared ahead of the one for the females. By the time the line for women was cleared, the men had been in the markets for hours and had sold their goods. These may appear simple, but they do have a huge impact on how business is conducted and how opportunity is lost.

What is the timeframe for connecting three million women to the market?

Our commitment is that by 2021 we will have connected three million women to the market. We have already gone beyond half of that number.

Given the disruptive impact of COVID-19, can you still meet the 2021 target?

I believe we can. For the simple reason that the demand to meet the Sustainable

Development Goals (SDGs) is even higher now than before. I remain optimistic. We will keep pushing ourselves, understanding the challenges that we face.

How do you connect the women to the market?

We have identified some core issues that make women uncompetitive in business. One is a lack of access to finance. You still have some countries asking women for their husband’s approval before accessing a loan. And interest rates for loans are too high and unaffordable.Also, some policies don’t support women's economic advancement. So, we are working with governments under the SheTrades initiative to determine precisely the problems women face and try to address those problems. We must think differently regarding women’s access to finance. Can we think of nontraditional ways that women can access finance?

Is such thinking going on?

Yes, it is. We are working with different partners. We are part of the SDG 500, which is an initiative that involves other UN agencies. We are collaborating with the private sector and some foundations. The objective is to mobilize about $500 million to support MSMEs, particularly those led by women, to access resources with minimal requirements.

Developing countries export a significant amount of inputs to other regions for the production of personal protective equipment (PPEs). In the context of the Africa Continental Free Trade Area, is ITC supporting Africa in producing PPEs?

Our support is much broader than just for PPEs because the foundation of the AfCFTA is trade liberalisation. It's how Africa positions itself to maximize the opportunities in free trade.In the current context, is there an opportunity for African countries to produce PPEs? Yes. And this is already starting to happen. But at what cost and are we in a position to produce to meet the demand of the entire continent? I believe there is scope for improvement because we are still importing from outside.

You were heavily involved in trade matters in your country [Zambia]. What are your views on Africa’s free trade area?

I am a believer in free trade and Africa should embrace this opportunity. But what needs to happen is that the level of political commitment should increase. In operationalizing the agreement, participating countries must come through on their commitments. Africa is positioned to attract investments. It has resources for domestic production. It has human resources. We must now organise ourselves better.

What support is ITC providing MSMEs in Africa in these trying times?

Our mandate includes working with MSMEs in support of economic development in developing countries. We support countries to better understand what has confronted them [COVID-19] these last few months. Through surveys, we have information on issues specific to certain countries. Our report builds on those efforts. We have the action plan, but alongside that, we work directly with businesses so they can navigate these challenging times.We work with businesses to find different ways of managing the business-to-business interaction that used to be face-to-face. Now businesses use online platforms to trade. We have continued to provide consolidated information through the Global Help Desk, which is a one-stop shop for all trade-related information.

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THEATRES for ChangeA new Amharic e-book titled Theatres for Change by Mihret

Massresha was officially launched this week. The e-book is a methodology handbook focusing on how to generate, develop, direct, act and stage research based

interactive dramas. Seven plays the author of the e-book wrote, directed and staged through 2006 to 2017, one with Afan Oromo version, are included in this book. “The book is intended to serve as a practical guide and a resource material for in-school and out-of-school youth groups, theatres, government organizations and civil societies, as well as for amateur and professional theatre practitioners. They can use this material as they employ drama as a tool of addressing various social issues,” Mihret says. According to the author, the book can help raise awareness and communication efforts on wide-ranging social causes such as health and education, agriculture and service provision, mutual respect and peaceful coexistence, ethics and anticorruption, corporate social responsibility and social accountability, human right and democracy, environment protection and conservation and so on. Such efforts can be more effective with the use of research based interactive approaches like Theatre for Change, a change that the country is striving to achieve. The book can also be a good policy input for shaping the future of Ethiopian Theatre. “Critics, trainers in the area, art correspondents, students, scholars, translators, potential patrons/ partners, policy makers, publishers, development communicators and anyone interested are warmly welcome to contribute in this instrument of change, which in its own way can play a vital role in the development and democratization process of Ethiopia, through reading and reflecting on this material,” Mihret said. “Interestingly, the book is completed during this covid period. The method can be customized to covid preventive mode, and expected to be widely promoted in the post-covid period. I am extremely glad to present this book for the Ethiopian public,” the author concluded.

Unlimited Habesha Music with Trace Muzika on habeshaview

Trace Muzika: #1 Music Channel Dedicated to Ethiopian Urban MusicOnline streaming service habeshaview is to offer unlimited access to Trace Muzika, a channel dedicated to non-stop video clips of the biggest hits in Ethiopia and worldwide.

TRACE Muzika is available from August 1 on the habeshaview-app. The habeshaview app offers content from several diaspora communities, highlighting their cultural heritage, history, traditions, socio-economic developments, business environments, tourism, and current affairs. It is available on mobile, laptop, tablet and smart tv.TRACE Muzika is the only channel exclusively dedicated to the latest music videos from Ethiopia. It airs the most popular music genres, focusing on the latest in Ethio Rap, Ethiopian Reggae, and Afrobeats. It covers music from many Ethiopian regions such as Amhara, Oromo, Tigray, Gurage, Wolayta and many artists – including Lij Michael, Betty G, Zeritu Kebede and many more. Trace Muzika includes a daily Top 10 Ekista Countdown, and an official ranking of the Top 10 Ethiopian songs.habeshaview is a privately held film distribution and media company that was established in 2014. habeshaview promotes the rich cultural heritage of several diaspora communities, history, traditions, socio-economic development, business environment, tourism and current affairs.

23



SURVIVAL OF THE DIGITIZED The state of the digital

economy in Ethiopia and the way forward

By Etsubdink Sileshi

As far as the digitization of societal life is concerned, the corona pandemic will be remembered as a watershed

moment. Even-though we are still living under its shadow our experience to date has made it clear that- digitization is indispensable to many aspects of our societal life both at normal times and when we face problems of this proportion. From keeping economies relatively robust, to helping societies stay more resilient (the communal aspect), and to effectively fighting the pandemic through efficient communication, contacting and tracing. Especially, markets are becoming more and more dependent on the internet. The digital economy is getting bigger and bigger on every passing day. Digital economy, here, refers to the use of ICT by consumers, businesses and by the public so as to improve the life of a society.The digital economy, enables the conduction of trade in goods and services on the internet. This requires physical and software infrastructure. .Since the advent of the internet, there has been a huge shift from the conventional economy-cash based-physical transaction, to e-commence and e-business -using digital payment .This has improved societal well-being by increasing productivity, widening employment opportunity ,boosting business efficiency and competitiveness. And at this particular time, when, lives and livelihoods are impacted by corona pandemic, where home is the new office and physical contact is less appealing, improved digitization paramount importance. In an extraordinary time, where we are required to stay distant from each other, only digitization makes us present while absent. It is said that “data is the new oil”. If so, digitization is the drilling, refining and consumption of that data. From labor market, to tele- medicine, to online schooling, nearly every aspect of our life has gone online. In the traditional economy, we have had “oil” and “non-oil” economies. Now, digitization is becoming a new sorting element to classify economies. The divergence between the new “digitized” and “non-digitized”

economies is emerging in front of our eyes .As of May, according to UNESCO, about 1.5 billion pupils in 165 countries (87% of the global student body) are affected by the pandemic. We don’t have a clear number on how many of these children are using digital technology to continue studying from home. However, we can reasonably guess that children in poor countries where the internet infrastructure is low, and parents too poor to afford for smart phones or computers to be dispassionately affected. Even, parents with access to internet cannot afford as many computers as the number of their children. This gap in human capital among the poor and rich families (countries) will haunt them throughout their lifetimes via low productivity (wage), delayed experience(less wealth) as individuals, and forgone labor hours, un accumulated human capital, and prolonged disruption the entire economy at macro-level. Better internet access and quality digital products means -well digitized societies are surviving while those wandering in the traditional physical market, cash -money, office working, chalk-board based schools are lagging behind. As for digitization, the benefits to the rich and the losses to the poor will continue to compound unless the later devise their way to jump on to the train of digital economy.When it comes to digitization in Ethiopia, it is at a low level but with a fertile environment if harnessed well (Only a handful of businesses in the transportation, financial, and entertainment sector are based on the internet). Young and literate population is key for internet economy which Ethiopia is rich with. This creates high appetite for technology, innovation, and vibrant internet economy. However, the current state of this sector is disappointing. For instance, only graduate level studies went online smoothly following the Corona lock down. The undergraduate, and every other class below that is on a pause (at least partially). National exams are yet to be conducted. Of course, there are efforts to reach out undergraduate students by availing relevant online materials for free. But, given the acute shortage of electricity in most rural areas (The GERD on Abbay will come to the rescue of the coming

generations), students’ ability to have smart phones or PCs, the effort is less likely to materialize.Despite all this, three recent developments in Ethiopia are worth examining as they appear to play key roles in digitizing the Ethiopian economy. One such important development is the initiative to expand the telecom service with private-actors’ involvement. Months have passed since we started hearing about the expression of interest by private(foreign) Telecom service providers .Given Ethiopia’s rising population with high demand for goods and services in one hand and the crawling telecom sector on the other (in a recent report, Ethiopia ranks 170th out of 176 in ICT development index) on the other hand, it is fair to say the state of ICT needs to be transformed. Improved accessibility, higher service quality and efficiency in the ICT sector are needed badly. As the world’s economies are busy migrating the old structure in to the internet world, Ethiopia must align and realign itself with digital currents of our time- for we are living in a watershed era as far as digitization is concerned(My opinion, here, should not be taken as a call to privatize Ethio-telecom. That is not my intention, at least for now. What I am trying to emphasis is that we need more than one telecom service providers. That way the consumer gets a choice, and competition and efficiency follow naturally.).The second important development is the National Bank of Ethiopia’s new regulation to limit cash withdrawal from banks. When this news came out I was wondering the appropriateness of limiting cash flow in an already pandemic hit economy. You know, people are less mobile, means, transactions go down. A closer examination shows that it doesn’t affect transactions for the low income

households/businesses (200,000 ETB per day is big money). And for medium and big businesses they are already in to the business of non-cash economy-They use CPOs, Checks and other non-cash banking services. Hence, NBE’s action is more likely to enhance the amount of money circulating through the banking system. And by denying large amount of cash withdrawal it ensures no cash is buried under mattress-the whole cash in the economy will flow in the formal channel. This reduces liquidity problems by banks. A related benefit is that people will switch to cashless transaction which is likely to reduce the transmission of diseases including corona. Forced digital transaction, adequate liquidity in the banking system, less theft and corruption are immediate benefits of such measures by NBE (with appropriate cyber security)The third and my last point on why the Ethiopian economy is ready to embark on digital journey is the new proclamation approved by the parliament to introduce e-payment. This is a good news! By establishing the digital frame work, defining the rules of the game, this newly introduced e-transaction bill will serve as an appetizer for large scale leap to transform businesses, commerce, and public services in to the new economy. The future is in the internet. Any business that hesitates to immerse itself in to this new vibrant world, will be left to the vagaries of the past physical world. In a time when data are the central ingredient in production of goods and services, and when the data is stored and manipulated on the internet, survival of the digitized and destruction of old business models is natural course of a socioeconomic evolution.

The author has an MA in Economics. You can contact him via: etsubdink08@

gmail.com

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No. MOVIE TITLE DOMESTIC GROSS INTERNATIONAL GROSS RATE

1. The Favourite $34,366,783 $95,918,706 7.52. Paddington 2 $40,891,591 $227,978,523 7.83. All about Nina $100,335 $100,335 6.04. Mid90s $7,362,439 $9,303,022 7.45. Vice $47,836,282 $76,073,488 7.26. Sorry to Bother You $17,493,096 $18,170,707 6.97. Eighth Grade $13,539,709 $14,347,433 7.48. Tully $9,369,755 $15,636,462 7.09. Life of the Party $53,059,911 $65,859,911 5.610. Can You Ever Forgive Me? $8,803,865 $12,442,161 7.1

Source: GQ Online Stream

All about NinaDirector: Eva VivesWriters: Eva Vives

Genre: Comedy DramaRunning Time: 1hr 37min

The FavouriteDirector: Yorgos Lanthimos Writers: Deborah DavisGenre: Comedy DramaRunning Time: 1hr 59min

Paddington 2Director: Paul KingWriters: Paul King

Genre: Adventure Comedy Running Time: 1hr 43min

Mid90sDirector: Jonah Hil Writers: Jonah Hil

Genre: Comedy DramaRunning Time: 1hr 25min

ViceDirector: Adam McKayWriters: Adam McKayGenre: Comedy DramaRunning Time: 2hr 12min

The game is easy, the rules are simple. All you have to do is make sure you fill every 3x3 box every row and every column, without repetition, using the number 1-9.

Sudoku

THE FAVOURITEEarly 18th century. England is at war with the French.

Nevertheless, duck racing and pineapple eating are thriving. A frail Queen Anne (Olivia Colman) occupies the

throne and her close friend Lady Sarah (Rachel Weisz) governs the country in her stead while tending to Anne’s ill health and mercurial temper. When a new servant Abigail (Emma Stone) arrives, her charm endears her to Sarah. Sarah takes Abigail under her wing and Abigail sees a chance at a return to her aristocratic roots. As the politics of war become quite time consuming for Sarah, Abigail steps into the breach to fill in as the Queen’s companion. Their burgeoning friendship gives her a chance to fulfill her ambitions and she will not let woman, man, politics or rabbit stand in her way.

BEST OF

27



DOWN1 Couch in a den2 Appliance for baking3 Amount owed4 Get to, as a destination5 Trio after R6 Law rm aide7 Long distance in

astronomy: Abbr.8 Initial poker payments9 Right this second10 Italian ice cream11 Castaway's escape

platform12 __ and crafts13 Speedometer display:

Abbr.18 Typical Saudi citizen19 Lesser of two __24 CPR expert26 Presses into service27 Health care professional28 Woodwind instruments29 __ for (verify)30 Uplift32 Moan and __

33 Financial inspection34 Poetic opposite of o'er37 Garden lattices40 Young pooches41 Pointy lunar phase43 Spectrumshowing

crystal44 Sports bar screens, for

short46 People nding sums48 Make less complicated50 Fancy pancake52 Strauss of jeans53 Scores 100% on55 Prepare, as hot tea57 Oscar actress Hathaway58 Mix with a spoon59 At that time60 Homer Simpson shout61 Founding Father

Franklin's nickname62 ''__ for Vengeance''

(Grafton book)

Solution: see below

ACROSS1 Any carbonated

drinks6 Make preparations10 Measure of carbs on

nutrition labels14 Readily apparent15 __ cost (free)16 Wyatt of the Old

West17 Lincoln's Birthday20 Prefix for freeze21 Very hard to nd22 Large winery

containers23 Cutlet meat25 ''Three-piece''

business attire27 With 47 Across,

Veterans Day31 Advertising

catchphrase35 WWII submarine36 Entryways of fences38 Be regretful about39 Lopsided win

40 Duos41 Musical postscript42 Fraction of a

minute: Abbr.43 Heart's beat44 Characteristic45 Alias for the note F47 See 27 Across49 Compact-__ player

(audio device)51 Scottish girl52 Scottish boys54 Slugger's stats, for

short56 Group in a movie60 Pearl Harbor Day63 More than64 Fencing sword65 Concave navel,

informally66 Sound of a snake67 The latest current

events68 Rear part of a ship

CROSSWORD PUZZLE

WEEKLY HOROSCOPES

Aries Cancer Libra Capricorn

Taurus

Gemini Virgo Pisces

Finish all you can early this week. This is a great time for a holiday, but be as thorough

and careful as possible if you must work. You can help someone feel better about the job they're doing. Remember that people will do a better job if they know what's expected of them, have some variety, and feel they have some areas of control. Be patient with anyone who tries to micromanage you this week.

It's a powerful day for partnerships or any meeting that demands diplomacy. This is a great week for careful analysis,

reorganization, and improving your technology. Midweek could bring ongoing stress to a point of crisis. There is nothing wrong with telling a superior if you can't ignore a certain behavior. Do this in a spirit of asking for help. It's a positive time for team projects and detailed planning. Watch cash flow carefully.

Co-workers could be particularly emotional at the beginning of the week. This may open a needed conversation

about what causes stress. At the very least, you can learn from what you see. The middle of the week can bring dramatic confrontations or at least a high level of frustration because of someone's behavior. You'll need to be your most diplomatic. It's important to say what you think.

Events early this week can make you oversensitive. Don't jump to conclusions about another person's behavior. Ask

questions rather than assume. Strive to look your best midweek. It will improve your attitude and can help others feel more professional. People will be attracted to you and feel you are someone they can trust. Be a bit conservative about big promises. Your encouragement can bring out the talents of someone less confident.

Watch what you say at the beginning of the week. You may be feeling the need to defend your point of view. Midweek can

bring unexpected challenges. Some people may be rather short-tempered. You shouldn't take this personally. Some problems may reach a point of crisis or decision. If you're coping with a stressful person or situation, get help from those above you or start looking for something better. Take a break from the usual routines.

Monday is a lucky day for you to ask for what you want and enjoy happy times with co-workers. Midweek events could

bring a workplace romance to your attention. It could either be you or someone you know about who needs to be more discreet. Pay close attention to the details. This is a great time to review what you're doing and get better organized. Resolve to be more guarded about private information.

This is a positive week to share what you can do. Any sort of public event will show

you at your best. An emotionally receptive energy will soften your usually strong-willed nature. A mellower attitude can help relieve a longstanding issue between you and a co-worker or client. These are uncertain times. Relax as much as possible. Events toward the end of the week can trigger your more critical and melodramatic reactions.

Leo

Work can be stressful at the start of the week. Visualize good relationships with people who may not be easy to work

with. Be ready for extra demands this week. You may have to give up a lot of personal time and let things slide at home for a few days. The more sympathetic you can be, the more successful you're likely to be. Week's end is a positive time to travel or renew old contacts to improve your career.

Scorpio

You could start the week feeling moody. Do your best to remain calm but cautious around people you don't trust or know well.

A desire to keep your job can stop you from speaking up when you know you should this week. Don't tolerate bullying or harassment in any form. You have the ability to look at any situation and make it better. Be alert for signs others are feeling stressed. Don't get too bent out of shape over this fact.

SagittariusLook for what you have in common with people you serve or see at work. This is an expansive time. You may

have to balance work and family responsibilities. Do your best to understand what is expected and then work on your own as much as possible. A good use of this energy is in cleaning and getting better organized. The end of the week will see you shine as a manager or team player. Trust that the answer will come.

You may be feeling rather insecure or irritable on the job. This is a great time

to tackle big projects that need to be broken down into smaller tasks. Think about what you can do to improve your health. It's especially important to be physically active if you have a desk job. You could be worrying unnecessarily at the end of the week. Remember the saying, "Don't sweat the small stuff. It's all small stuff!"

Aquarius

This can be a happy week for everyone. Get as much unfinished work done as possible. To be most effective, you'll

need to find ways to mix work and pleasure. This is a powerful week to think about the effect stress has on your workplace. The more people feel they're in control and able to successfully do what's expected, the better things will be for everyone. Network with people you respect.

Crossword Solution

28



29



International Competitive Bid /ICB/

Bid ref. HB/011/2020

Hibret Bank would like to invite interested Local and International Bidders to bid for Supply and Related Services of the following ATMs:

S/N Description Quantity1 TTW (Through the Wall) 402 Lobby 10

1. The bid document shall be obtained commencing 30 August 2020 from Procurement Division, which is located at Debrezeit road around Global Hotel, Mekwor Plaza building basement floor against payment of a non-refundable fee of Birr 500.00 (five hundred Birr) or its equivalent US dollar in Account Number IN0403007 in any branch of Hibret Bank during office hours.

2. Interested bidders are advised to review the bid document carefully before preparing & submitting their bids.

3. Bids must be submitted on or before August 19, 2020 until 2:30 P.M.4. Each bid must be presented in a sealed envelope and strictly in

accordance with the instruction to bidders indicated in the bid document.

5. The bid will be opened at Hiret Bank Head Office located at Mekwor Plaza Bldg. 1st floor in Conference room at presence of bidders or their representatives who choose to attend in the bid opening on August 19, 2020 3:00 P.M.

6. Failure to observe the instructions & conditions provided in the bid document will constitute grounds for rejection of the bidder from competition.

7. The Bank reserves the right to accept or reject the bid partly or totally.8. For additional information bidders can contact by the following address

Tel. 011 465 5222 ext. 212 and 211 or 011 470 6541

UNITED, WE PROSPER

International Competitive Bid /ICB/

Bid No. HB/008/2020

Hibret Bank would like to invite interested Local and International Bidders to bid for Supply & related services of Point of Sale (POS) Terminal

Description Unit QtyPoint of Sale (POS) Terminal Pcs 100

Therefore, interested bidders shall submit their proposals as per the following conditions.1. A complete set of Bidding documents can be purchased by interested

bidders upon payment (depositing) of non-refundable fee of Birr 500.00 (five hundred Birr) or its equivalent US dollar in Account Number IN0403007, in any branch of Hibret Bank; nearest and convenient to you after five (5) days of the bid announcement for the first time.

2. Bidders can obtain the bid document from Procurement Division, which is located at Debrezeit road around Global Hotel, Mekwor Plaza building basement floor.

3. Interested bidders are advised to review the bid document carefully before preparing & submitting their bids.

4. Bids must be submitted on or before August 19, 2020 until 2:00 P.M.5. Each bid must be presented in a sealed envelope and strictly in

accordance with the instruction to bidders indicated in the bid document.6. The bid will be opened at Hibret Bank Head Office located at Mekwor

Plaza Bldg 1st floor in Conference room at presence of bidders or their representatives who choose to attend in the bid opening on August 19, 2020 at 2:30 P.M

7. Failure to observe the instructions & conditions provided in the bid document will constitute grounds for rejection of the bidder from competition.

8. The Bank reserves the right to accept or reject the bid partly or totally.9. For additional information bidders can contact by the following address

Tel. 011 465 5222 ext. 212 and 261 or 011 470 6541

UNITED, WE PROSPER

RESUME

BIG PICTURE PERSONALS

STARTUP CAPITAL 15,000 Birr

CURRENT CAPITAL Growing

Reasons for starting the business: To help people represent

their interests in a responsible way

Biggest perk of ownership:Making better opportunities for women

Biggest strength: Committed to

my goal

Biggest challenging: Community awareness

Plan: To build empowerment

organization

First career: Psychologist

Most interested in meeting: Rophnan Nuri

Most admired person: My grand father

Stress reducer: Time with my self

Favorite past time: Having time

with my friends

Favorite book: RConversation

with God

Favorite destination: Dubai

Favorite automobile: Mercedes Benze

Name: Selam Atalay

Education: BA in psychology

Company name: Faith Empowerment

Title: Founder

Founded in: 2020

What it does: Works on self-determination in people and communities

HQ: Addis Ababa

Number of employees: 1

Pause the moment

The collection on show at the National Museum is ranked among the most important in sub-Saharan Africa, but sadly many of its exhibits are poorly labelled, lit and displayed. Far and away

the highlight is the palaeontological exhibition in the basement, the home of world-famous Lucy. Her 1974 discovery in the Afar region of northwestern Ethiopia changed our understanding of human origins forever. This section is well labelled in English, so if your time is limited spend most of it here. Also here is the fossilized evidence of some amazing extinct creatures, like the massive sabre-toothed feline Homotherium and the gargantuan savannah pig Notochoerus. English-speaking guides are available for free (they should be tipped afterwards) and help to bring things alive.

NATIONAL MUSEUM OF ETHIOPIA

30



Ethiopia’s Sport Commission launched the second phase construction of Ethiopia’s national stadium Adey Abeba stadium.

Sport Commissioner, Elias Shikur and a number of other guests, attended the launching event of the project which is expected to take almost three years for completion.The second phase, which includes installing roof and other finishing works, will be carried out with more than 5.57 billion birr by China State Engineering Corporation.The first phase of the FIFA-standard, 62,000-seat stadium, was built with 2.47 billion birr.

Commission launches second phase of Adey Abeba stadium

Great Ethiopian Run (GER) announced the postponement of the 2020 TOTAL Great Ethiopian Run International

10km race due to the COVID-19 pandemic.The 20th edition of the race was scheduled to take place on November 15, 2020.GER announced the postponement of the race indefinitely and affirming to give further details for the new date in September.Great Ethiopian Run is an annual Africa’s largest 10-kilometre road running event which takes place in late November in Addis Ababa, where tens of thousands of sporting fans participate.

2020 TOTAL Great Ethiopian Run International 10km postponed

Hamburg Marathon to go ahead on 13th September

Organizers of the Haspa Hamburg Marathon announced that the World Athletics Gold Label road race is scheduled

to go ahead on September 13 with both elite and mass races. They also set out a comprehensive hygiene policy, based on international expertise.With the guidelines in place, organizers are hopeful that 10,000 marathon runners and 4000 participants in the half marathon will be able to race. If this does go ahead, given the current situation

caused by the coronavirus, the race in Hamburg would most likely be the first significant international marathon to take place with an elite and mass field since the start of the pandemic.The Haspa Hamburg Marathon was originally planned for 19 April. The rescheduled race will have a reduced elite field of about 30 athletes. The athletes will have to undergo testing before the race and will only be drawn from certain countries, given the restricted travel situation. Participation by athletes from

countries where the coronavirus poses a higher risk will not be allowed – either in the elite or in the mass field.Last week chancellor Angela Merkel met the presidents of Germany’s federal states and the decision was agreed that major events would not be permitted to take place until the end of October but exceptions can be made for events where contact tracing and adhering to hygiene regulations are possible. Individual federal states are also permitted to set their own regulations.The half marathon and marathon will have different start and finish lines as well as different start times. Most of them will be in batches of 1000 per starting group who will be sent on their way at roughly 10-minute intervals. Disinfection stations will be set up both in the event area in general and along the course.

First-ever African

strategy for women's

football

The African football body has put up an ambitious four-year plan that will take the women's game to the next level.

The Confederation of African Football (Caf) has launched its first-ever strategy for women’s football which charts the course of realizing the full potential of the women's game until 2023.The four-year women's football strategy blueprint was developed by top stakeholders at a workshop in Egypt in November and subsequently approved by the Caf Executive Committee.

The 28-page released plan is built on the development, competition, professionalization and leadership, marketing and promotion, and social impact of football. The first ever CAF Women’s Football Strategy, the strategic plan to shape the future of the women’s game has come to fruition.Speaking about the launch of Caf’s continental strategy for women’s football, president Ahmad Ahmad told the Caf website: “Today is a historic day for women’s football in Africa. "My gratitude goes out to the key stakeholders and experts who took part in putting together this strategic document, which is

the beginning of many things to come.” On her part, Isha Johansen, who is the chairperson of the Caf Organizing Committee for Women’s Football, and also doubles as Sierra Leone Football Association boss, said: “The strategy is a follow-up on the Caf Women’s Football Symposium in 2018. "We have now established strategies and drawn up a road map which we believe will enhance the development of women’s football on the continent in all areas and levels from Leadership, Governance, Technical, Education, Strategic Partnerships and Grassroots.”

31



Ever catch the perfect picture with your digital camera or camera phone and wish you could find a way for others to experience it? Here is your chance. If you find yourself at the right place at the right time and happen to catch an amazing scene you believe someone else should see, send us your news pictures with no more than 30 words to [email protected] and we will publish it. Spotlight

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PUPPY IN A TRASH

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CLEANING A FRIEND

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COFFEE BOOTH

Ethiopian resumes flights to three African destinationsEthiopian Airlines announced resumption of flights to three African Countries, Benin, Cote D’Ivoire and Cameroon.Cotonou, Abidjan and Douala are among the West African destinations which the Ethiopian Airlines has resumed flights to.The Ethiopian Airlines announced the resumption of its flight to Dubai four times a week with in enhanced health and safety measures.Ethiopian Airlines Cargo Operations have been in the frontline of the aviation sector amid pandemic delivering much needed materials in the fight against COVID-19.

RAKEZ re-opens its doors for business set-up consultationsRas Al Khaimah Economic Zone (RAKEZ) will be opening its sales offices in Ras Al Khaimah, Dubai and Abu Dhabi on Monday 3 August 2020, welcoming investors seeking consultations on business set-up in the UAE.As RAKEZ carefully re-opens its doors to new investors, it has taken a series of precautionary measures to ensure the health and safety of its visitors, employees and the whole community. Investors visiting RAKEZ for consultation will meet their business set-up consultants in designated open spaces while maintaining safe physical distancing. In addition, the authority has made several enhancements in the business set-up processes by eliminating the requirement of passing on original and printed documents. Investors can walk in to any of RAKEZ sales offices in Ras Al Khaimah, Dubai and Abu Dhabi, to consult with the RAKEZ team before proceeding to RAKEZ Portal 360 to submit all requirements, sign their documents, and completing the payment transactions in a safe and secure platform.

IATA urging African governments to unblock bottlenecks As a consequence of the pandemic and associated restrictions, African airlines are forecast to lose USD 2 billion in 2020. Without urgent financial relief, the industry is at risk of collapse, putting about 3.3 million jobs and USD 33 billion in African GPD in jeopardy.To date, the governments of Sub-Saharan Africa Rwanda, Senegal, Côte D’Ivoire and Burkina Faso have pledged a total of USD 311 million in direct financial support to air transport. A further USD 30 billion has been promised by some governments, international finance bodies and other institutions including the African Development Bank, African Export Import Bank, African Union and the International Monetary Fund (IMF) for air transport and tourism. However, much of the relief is yet to reach those in need due to institutional bureaucracy, complex application and creditworthiness processes, as well as cumbersome conditions to secure finance.“Over USD 30 billion in financial support has been pledged to aviation and tourism in Africa. Some of this money has been allocated by governments, but far too little of it has reached its intended recipients. Governments and lenders need to urgently unchoke the bottlenecks so that the money can flow quickly, otherwise it will be too late to prevent closures and job losses. There will be no point re-opening the borders and skies if there is no industry left to speak of that is capable of supporting trade and tourism, which are the key components of any thriving economy,” said Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East.

Ethiopia vaccinates 15 mln children against measles Nearly 15 million children have been vaccinated against measles in Ethiopia in an effort by the health authorities to maintain essential health services, even as they battle to contain the COVID-19 pandemic.The nationwide campaign which wrapped up this weekend was conducted under the leadership of the Ethiopian Ministry of Health with support from World Health Organization (WHO), UNICEF, Gavi, the Vaccine Alliance and the United States Centers for Disease Control and Prevention. The vaccination campaign was initially scheduled for April but was suspended due to the pandemic and resumed in July.The campaign ran for 10 days, which is longer than similar past campaigns to limit crowding and risks of COVID-19 infections. Health workers wearing face masks delivered the measles vaccine in open and well-ventilated areas. Other measures such as physical distancing, handwashing and temperature checks were also implemented in compliance with COVID-19 prevention guidelines.The campaign’s target was 15 million children and it attained 96% coverage (14.4 million), showing that even with an ongoing COVID-19 pandemic, countries can continue to carry out life-saving mass vaccinations.

Government reforms to drive Ethiopia’s tourism industry in the long run One of the world’s leading real estate investment and advisory firms, released its overview of the Hotel industry in Ethiopia. The report examines the factors that make Ethiopia a unique tourist destination as well as the impact of COVID-19 on tourism in the region. As of March 2020, international arrivals in Ethiopia decreased by 35.5% year-on-year to 118,950 mainly due to decreased flights, as well as cancellations by Ethiopian Airlines, which flies to over 80 destinations worldwide from Addis Ababa. According to the report, the country’s tourism sector shows tremendous potential for growth given it is home to nine world heritage sites, as well as government measures to improve the investment landscape. This includes relaxed visa policies, enabling nationals as well as residents from the African Union to obtain visa’s on arrival, which saw the Africa Visa Index go up by 32 places to secure a top 20 position in 2019.

RES4Africa and EACREEE sign MoU to strengthen cooperation on the Micro-Grid Academy (MGA)RES4Africa Foundation and the East Africa Centre of Excellence for Renewable Energy and Energy Efficiency (EACREEE) signed a Memorandum of Understanding to increase their cooperation and mutual support in the promotion of renewable energy. The agreement aims especially to deepen their collaboration in the strengthening and expansion of the Micro-Grid Academy (MGA), a vocational capacity building programme led by RES4Africa Foundation and based in Nairobi, set to create skilled and conscious workforce to deploy decentralised renewable energy solutions within and beyond the East Africa region.

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We welcome submittals regarding news/information pertinent to the CFTA and relegated issues.

PRESENTED BY THE PAN AFRICAN CHAMBER OF COMMERCE AND INDUSTRY

CFTA.Now A section designed to promote Africa’s Continental Free Trade Area using News, messages, events and commentaries. It’s a joint initiative by the Pan African Chamber of Commerce and Industry and capital.

OPINION

TRADE FACILITATION

The executive secretary of the African Continental Free Trade Area (AfCFTA), has proposed to African heads of state that trading under this framework starts in January 2021, according to an official.Trading under the AfCFTA agreement was due to commence on July 1, 2020, but as a result of the Covid-19 global pandemic, this date was postponed."There is a proposed launch date, January 2021. It has not been made official but it is believed that an expected AU Summit in November, Heads of State will confirm the new launch date," Louis Yaw Afful, Executive Director of the AfCFTA policy network, told The New Times.He said that the launch of the continental body, which is aimed at bolstering intra-regional trade, was besides Covid-19, delayed because "there are other important issues to be wrapped up."Afful said: "We needed 22 countries to ratify or deposit their instruments of ratification. However, that is not enough. Two thirds of the 54 countries have done that, and we are here, talking about those who have signed. But those who have not ratified, the Arab Maghreb Union, also form a group which will finance the union.""We need all of them because they wouldn't benefit from a deal whose treaty they haven't yet ratified."The other issue, he noted, is that for members who are not yet full members, they need to submit their schedules of specific commitments on trade in services, in line with agreed modalities.The schedules of specific commitments from each AfCFTA state will effectively reflect the single African services market intended by the Protocol.AU member states must prepare a schedule of specific commitments which outline what specific treatment each country guarantees to provide to the other.Here, countries look at things such as market access, national treatment or additional commitments such as standards and accreditation, among others."We negotiated all these things and so, there is a need to submit schedules," he said, noting that "the rules of origin are 90 per cent complete.""Again, if we take trade in services, which is a very important part of the whole agreement, few countries have fully completed their schedules and you cannot trade with another partner if your schedule is not ready. These are technical issues that also need to be resolved."According to Afful, AfCFTA Secretary General, Wamkele Mene, "made proposals for Heads of State who have, more or less, pushed for the reopening or the launch.""In any case, the new office of the AfCFTA Secretariat, which is now here in Accra (Ghana) administratively needs to be completely ready. And, because of lockdown here and there, and border

closures, the administrative offices are not fully ready.""The building is ready but the staff needs to move in. The SG is virtually working from Addis, in Ethiopia. So, this is also an important area we have to look at."The AfCFTA aims to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the

Customs Union. It will bring together all 55 AU member states covering a market of more than 1.2 billion people.In terms of numbers of participating countries, it is set to be the world's largest free trade area since the formation of the World Trade Organization.Estimates from the Economic Commission for Africa (UNECA) suggest that the trade deal can boost intra-African trade by 52.3 percent by eliminating import duties, and

to double this trade if non-tariff barriers are also reduced.In March 2018, African leaders held an extraordinary Summit on AfCFTA, in Kigali, during which the Agreement was signed by majority countries, kicking off the process to establish the trading bloc.Its operational phase was launched during the extraordinary AU Assembly in Niamey, Niger on July 7, 2019.

(The New Times)

Paradoxically, the health and economic crisis have shown that the restoration of local production will be achieved through greater trade and economic integration.

The post-pandemic period promises to be a moment of opportunity for Africa, that of securing supply by bringing production back to the continent. Yet the risks of supply disruption are not as much linked to a lack of factories in Africa as they are to the concentration of trade.Africa imports 75% of its drugs from Europe, India, and China. First and foremost, securing supply requires greater diversification of suppliers, backed up by trade agreements. Can this be done in a way that benefits African countries?

Intra-community trade within EACIntra-continental trade circuits are more fragile than international circuits. Despite the pandemic, cargo aircraft continue to land in Nairobi, container ships dock in Djibouti and oil tankers leave Port Sudan. Traffic in the Kenyan port of Mombasa is only expected to decrease 2.1% in the first quarter of 2020 as compared to 2019. The problem lies elsewhere.

Quality of infrastructureIntra-Community trade within the East African Community (EAC) represents only 20% of its total trade (as opposed to 70% in Europe). Several factors are to blame for this, including the poor quality of infrastructure, complex administrative procedures, low competition in the carrier industry, and a lack of interconnectivity between the various modes of transport.For example, clearing a container takes eight days in Mombasa, less than two days in Mauritius and barely ten minutes in Europe. These differences are even more pronounced when it comes to transport corridors. According to TradeMark East Africa, it takes twelve days for a shipment from Djibouti to travel the 850 km to Addis-Ababa. That is four times longer than Asian averages for the same distance.The current crisis has shed a harsh light on these difficulties, as lines at the Uganda-South Sudan Border have stretched 70 km. Failure to mutually recognise COVID-19 tests has led to conflicts between Tanzania and Kenya and placed carriers in danger.

Inflation differentialAnother sign of the lower resilience of continental circuits is the inflation differential per product (imported or not).

In Kenya, conflict and subsequent delays at the Tanzanian border have tripled the price per kilo of onions. It is certainly difficult to determine which issues are caused by supply problems, and which are caused by locust invasion, flash floods and recurring inflation during Ramadan.However, those African businesses that have been surveyed confirm that local supply has suffered greater disruptions than the others.

Inter-continental trade with EACAdapting inter-African trade to shocks is even more complicated due to inequalities in access to financial and digital services.

Electronic cargo tracking systemThe EAC’s adoption of an electronic cargo tracking system, including an inventory of drivers’ COVID-19 tests, is especially encouraging.It proves that coordinated action at the continental level is possible. This is welcome news, since this type of coordination is required not only in order to regulate the flow of trade, but to safeguard intellectual property rights, competition and quality.

Quality control laboratoriesThe mutual recognition of quality control laboratories will doubtless be right at the top of the agenda for the African Continental Free Trade Area (AfCFTA).Another priority could be to expand the use of rail transport, as has been achieved since 1 June for a portion of the Mombasa corridor linking Uganda, Rwanda and South Sudan. This decision was also negotiated by the EAC to ensure drivers’ safety and smoother-running supply.

Bottom lineIn the end, the current pandemic could accelerate regional integration. It has revealed just how crucial the facilitation of trade is in times of crisis, acting as a magnifying glass showing the importance of trade in ordinary development.At a time when Africa is seeking to rely on the local market to increase economic opportunities – for which COVID-19 measures will play a crucial role in supporting demand – trade must become more fluid. Otherwise, producers will not be able to access the markets, and there will be no economies of agglomeration or scale.Finally, the challenge that African states have already chosen to take up via the continental free trade area is to secure trade in order to relocate. Not the reverse.

AfCFTA implementation pushed to January

“When we find researches/opinions from other publishers that might interest you, we pass them along. Below you'll find the latest opinions on why Trade must become more fluid’ in post-pandemic era by Christian Yoka and Gaëlle Balineau. Their opinions may differ from

what you read in CFTA.Now. This article first appeared on The Africa Report.

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EXCHANGE RATE7-30-2020

Comment

The Trivialization Of MoneyBy Mark Hendrickson

About 60 years ago, Sen. Everett Dirksen (R-Ill.) uttered the famous quip, “A billion here, a billion there, and pretty soon you’re talking about real money.”

Has politics in Washington changed much in the six decades since? Yes and no. No, the same cavalier attitude about spending other people’s money rages on unchecked. Yes, the scale has changed drastically. Today the refrain is, a trillion here, a trillion there.“Trillion” is a simple word. It rolls effortlessly off the tongue. But the word’s simplicity belies the immensity that it signifies. If you stacked one-hundred-dollar bills flat on top of each other, a million dollars would be about 40 inches tall, a billion would be more than twice the height of the Empire State Building, and a trillion would rise over 631 miles. If those were one-dollar bills instead of hundreds, the pile (again, stacked flat on top of each other) would, if laid on its side, circle the Earth at the equator more than 2.5 times. In terms of time, if a you had been spending a million dollars a day, every day since the birth of Christ, you still wouldn’t have spent even three-quarters of one trillion dollars.The first time the entire GDP of the country exceeded $1 trillion, John Kennedy was president. The first time the national debt reached that sum, Ronald Reagan was president. Today, the national debt has soared to over $26 trillion. This summer, Uncle Sam set a record by spending over $1 trillion in a single month.Today, under the pressure of democratic politics in which government is viewed as a Santa Claus with infinitely deep pockets, the two parties (the party of Big Government-the Republicans-and the party of Bigger Government-the Democratic socialists-never propose freezing, much less (gasp!) shrinking federal spending. The only debate is about how many additional trillions of dollars of debt to add.Among its other deleterious effects, the coronavirus pandemic has accelerated the pace at which our government is adding to the national debt. Having already authorized at least $2.9 trillion in emergency spending-close to half of which the government hasn’t even disbursed yet, according to Sen. Ron Johnson (R-Wis.)-the current political quarrel is between Republicans prepared to spend $1 trillion more and Democrats who want to spend $3 trillion more.The sad thing is that even if the pandemic were to disappear tomorrow, the crazed push for more debt would continue. Presumptive Democratic presidential candidate Joe Biden recently unveiled two multi-trillion-dollar spending plans. First, Biden wants to spend $2 trillion in response to climate change (a figure that the democratic socialists in Congress will surely claim is far too small). That pales next to the $7 trillion that Biden says he will use to close the wealth gap between rich and poor, black and white.The continued spending of trillions of dollars that don’t even exist yet is insane. What we are witnessing is the utter trivialization of money. Money used to be respected. It was a solid symbol that something valuable had been brought into existence by human ingenuity and/or effort. A unit of money represented economic production, the creation of new wealth. Today, our currency has taken on an unserious “Monopoly money” quality. Politicians treat it like a plaything. It doesn’t bother them that they are saddling our children with tens of trillions of dollars of debt. Why worry? It’s only money. Or is it?

The Three ‘F’s’There are three “F’s” that have enabled the trivialization of money: fiat currency, the Federal Reserve System, and financialization.The “original [monetary] sin” is the adoption of a fiat currency - “fiat” denoting a money substitute that has no nonmonetary value in the marketplace. Our money used to consist of real economic goods-specifically, gold and silver coins or paper certificates redeemable in gold or silver. The United States went off the gold standard in two stages-in 1933 when FDR ended currency redemption for Americans and in 1971 when Richard Nixon did the same internationally.When Americans bought and sold goods and services with precious metals (or a paper note redeemable in precious metal) there was an implicit sense, a confidence and security, that they were trading economic value for economic value.A silver coin had genuine value, whether it was used as

money or traded as a commodity. It would have value in the marketplace even in the absence of legal tender laws forcing people to accept it as “money”-unlike the backed-by-nothing-substantial Federal Reserve Notes we are compelled to accept today.Fiat currencies sooner or later trade at a price that reflects economic reality-the fact that trillions of rectangular pieces of “paper” (actually, a cotton-linen compound), or digital representations thereof, are essentially worthless. (If you doubt this, ask yourself if you would strive to accumulate those pieces of fabric if the government didn’t mandate that they be accepted as “money.”)The Federal Reserve System, ostensibly created to support monetary stability and to lessen the ups and downs of the business cycle, has evolved into a bizarro monster. Having already seen about 97 percent of the dollar’s purchasing power melt away in its 106 years of operation, today’s Fed strives for a 2 percent inflation rate-that is, it seeks a deliberate devaluation of 2 percent of the buck’s purchasing power year after year. More ominously, the Fed’s main function now is to bail out Uncle Sam whenever our overleveraged financial system threatens to collapse and end the government’s ability to redirect trillions of dollars per year.To accomplish this goal, the Fed has engineered near-zero interest rates for at least a decade. What has enabled the federal government to continue its profligate overspending is the Fed-engineered freedom from having to pay historically normal rates of interest, thereby shaving hundreds of billions from the federal budget.The side effects of the Fed having driven interest rates to near zero have been pernicious to our economy. The most important prices in a market economy are interest rates-sometimes called “the price of money,” but, more accurately, the price of capital. Interest rates apportion and coordinate consumption and production between the present and the future. With near-zero interest rates, the time value of money has been more or less obliterated, obscuring vital price signals that entrepreneurs need to help guide their decisions.Another ill effect of near-zero interest rates is that they essentially create billions and trillions of dollars of “fiat capital,” which is no more real capital than fiat currency is real money. The artificially cheap fiat capital resulting from the Fed’s policies bails out zombie corporations, enabling moribund businesses to stagger on rather than fold. That retards the normal, healthy economic process of valuable economic inputs migrating from relatively uneconomical uses to entrepreneurs starting new businesses.In short, the Fed has short-circuited the essential self-adjusting feature of the market economy-the “creative destruction” by which stagnant firms die out and vibrant new businesses take their place in the normal cycle of business. This has caused persistent slow growth as we inexorably head toward what I’ve been calling “the Japanization of the American economy.”The third “f,” financialization, is the natural outcome of the Fed’s exotic monetary manipulations. Taking advantage of trillions of currency units created out of thin air and artificially suppressed interest rates, clever financiers play exotic financial games. In normal economic times, monetary savings supplied the capital that financed the production of new real wealth. Capital was used for the humane purpose of improving standards of living. Today, though, capital has become a somewhat evanescent phenomenon, a mere abstraction. Financiers devise clever ways to arrange and package this semi-ephemeral thing called “dollars” to make other dollars without producing any real wealth at all. And, as we found out in the 2008 financial crisis, the federal government raced to rescue Wall Street for the completely self-interested reason that without an immense functioning financial infrastructure, Washington’s multi-trillion-dollar spending and redistributing machine would quickly grind to a halt.

Who’s to Blame?Question: Who deserves the blame for the fiscal insanity of pseudo-money and pseudo-capital? Well, who deprived the American people of real money? The federal government. Who created the deus ex machina known as the Federal Reserve System? Again, the federal government. But it’s just too easy, convenient, and expedient to blame politicians.The fact is that “we the people” are to blame. A majority of Americans over the past 140 years or so have fallen hook, line, and sinker for the progressive catnip of government being cast in a role of Mommy and Daddy

and Santa Claus. A majority of Americans keep voting for government to spend more, more, more. For the politicians, the incentives are plain: Spend more on programs that voters like, or those voters will send you packing.The traditional abhorrence of government debt was burned into our political DNA by such fiscally honorable presidents as George Washington and Thomas Jefferson. They thought it immoral to spend money today and expect future generations to pay for it. (Are today’s protesters sure they want to cancel out Washington and Lincoln completely?) Today, though, that moral restraint is outdated and defunct. Whether it’s private debt or public, tens of millions of Americans live according to a “consume today, pay for it later (maybe)” ethos. With that being the prevailing mentality, the creation of new Federal Reserve Notes by the trillion will continue until that fateful day when the increasingly brittle debt structure starts to collapse.And here is some bad news to close with: In early 2019, I warned about Modern Monetary Theory (MMT) as a tool for weakening the private sector and imposing stealth socialism. Surprise! We’re getting a heavy dose of MMT right now. The federal government and Federal Reserve are working hand in hand to conjure up trillions of new fundamentally insubstantial and essentially counterfeit “dollars” for Uncle Sam to spend. All those trillions are adding absolutely nothing to our country’s stock of wealth, but they are making more Americans feel increasingly dependent on Washington.As is often the case with monetary shenanigans, in the short term, creating additional trillions of fiat dollars doesn’t seem to be doing any harm. And in the long run? The British economist John Maynard Keynes parried that question by glibly replying, “In the long run, we’re all dead.” Well, yes, but a more honest answer is that monetary mischief can cause a lot of pain to a lot of people before they die.The trivialization of money has far-reaching consequences that are anything but trivial.

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