Print Version Vol 16 No 844

Eid Mubarak
Volume 17 No. 844, SUNDAY, July 3, 2016
SUNDAY
21
Content Matters
Mon
Tue
Wed
Thu
Fri
Sat
210
140
200
130
200
130
180
130
180
130
200
130
E i g h t ( 8 ) b i r r o n ly
60
43
Number of Water
producing companies
in the Country.
Number of water producing

Companies licensed by the
Food, Medicine and Health
Care Administration
Illustration By Fortune
50
10 Br
Average price of
bottled water
per litre
Number of water
producing companies
certified by the
Ethiopian Conformity
Assessment Enterprise
Number of water producing

companies who are temporarily
banned in 2015 for not using
standardised seal
5.6 Litre
< 1 Cent
Per capita consumption of bottled water
10
Price of tap water per litre
Annual Bottled Water Production (in million hectolitres)
2.1
2010
1.3
1.6
2011
2012
ion
ct
oje
Pr
2013
Gross Value Production ( in millions Br)
2014
2
0
2015
8.2
7.1
6.7
5.7
9.8
8.3
5.7
on
ecti
Proj
3.6
2.5
2010
2010
2010
2010
2010
2010
bottled water Concerns

Nothing is more vital, more innocuous, more profitable and more risky than water if not
served right, that is. Multiple concerns surround consumption of bottled water. It is not
just the fact of plastic but also uncertainty about standards checks and quality assurance
that can guarantee public health. Neither international nor national standards for plastic
containers of food and water may have been checked despite evidence of the dangers
lurking behind those attractive labels, especially when the bottles have been exposed to
extreme temperatures. In some cases the labels do not provide adequate information
about the contents. With new varieties increasingly appearing, there is need for public
education and awareness as the advocated practices of re-use and recycle may be harmful
to physical health. Organisations comprising the institution mandated to safeguard public
health must ensure that the convenient, popular and profitable product of bottled water
is actually safe for consumption. PLEASE SEE THE FULL FEATURE ON PAGE 2.
Ermias T. Amelga breaks his silence with apology

After two years in exile and a month since his release on bail from custody, Ermias T.Amelga has broken his silence. He apologised to
homebuyers, taking full responsibility for the mishaps at Access Real Estate (ARE). "I may have many excuses, good or bad, and many
unexpected events may have contributed, but at the end of the day, someone has to take responsibility, and I do," reads Ermias testimonial
letter. This six-page letter was circulated through email to homebuyers and others involved in the process. The letter also tells his version
of the story, for the first time, particularly in public fora. The narration includes policy-level obstacles, such as citywide no work orders
on leased land. PLEASE SEE THE FULL Story ON PAGE 7.
Rent (2014/15)
Dashen (93.6m Br)
BoA (73.6m Br)
Nib (78.05m Br)
United (70.2m Br)
AIB (93.4m Br)
LIB (32.9m Br)
BIB (38.2m Br)
Fortune is a weekly business newspaper published and distributed by Independent News & Media Plc. Tel: 251-011 416 30 20. Fax: 251-11-416 30 39. P. O. Box: 259, Code 1110. www.addisfortune.com. Price: 8.00 Br, Djibouti 400 FD, Somaliland 3,000 SL.
Editorial
Content Matters
Established in May 2000.
Volume 17, Number 844

Sunday, July 3, 2016
Fortune is a weekly business
newspaper published and distributed
by Independent News & Media Plc.
Fortune is a registered newspaper
with the Ministry of Trade and Industry
under Licence Number 667/98.
Independent News & Media Plc is
registered by the Ministry of Trade
and Industry under Registration
Number
020/2/2349/97.
Managing Editor
Tamrat G. Giorgis
tamrat@addisfortune.com
Editor-in-chief
Samrawit Tassew
Samrawit@addisfortune.net
Woreda 08, House Number 897
Fortune
Almost as if hedging its bets, government has three contending

entities in the race for establishing industrial parks - the Industrial
Parks Development Corporation, the Ministry of Industry and Metals &
Engineering Corporation. Despite the huge costs involved in prioritising
industrialisation, there is no coordination, inadequate communication
and competition between them. Rather than being enabler and
operator too, government should limit its role to legislation, creating
an enabling environment for private sector participation, providing
infrastructure and incentives. Experimentation seems wasteful.
Agenda
Opinion
Cognitive computing refers to developments in artificial

intelligence, with computers being built to learn from their
experiences. This means increased engagement between people
and machines in a world of connectivity known as the Internet
of Things. Big data can now be used to revolutionise industry and all is inspired by the human brain, which performs roughly
10,000 times better than the best machines. By adopting some
characteristics of the human brain, computers can become more
compact, efficient, and powerful.
Page
30
Page xx
32
Public Health Concerns in

Booming Bottled Water Sector
Over the past few years the number of companies involved in the bottled water industry has started to balloon.
Although this initial growth period coincided with some well documented procedures for checking standards, such
processes are not still being conducted intensely enough. This includes the prevalence of uncertified brands on the
market, bringing with it concerns over public health, Dawit Endeshaw Fortune Staff Writer reports.
Deputy Editor-in-chief
Getachew T. Alemu
getachew@addisfortune.net
Woreda 04, House Number 1253
Copy Editor
Ijahnya Christian
copyeditor@addisfortune.net
Research Editor
Samson Berhane
samson.berhane@addisfortune.net
Reporter
Dawit Endeshaw
dawit@addisfortune.net
Nardos Yoseph
nardos.yoseph@addisfortune.net
Photographer
Geremew Tigabu
geremew@addisfortune.net
Columnist
Girma Feyissa
girma@addisfortune.net
Cartoonist
Henok Demessie
henokbezawit@gmail.com
Creative arts Editor
Ashenafi Chekol
designer@addisfortune.net
Exclusive Advertising Agent
Commercial Information Agency Plc

advertfortune@gmail.com
ad@addisfortune.com
Tel: 251-11-416-3020
0911448026 / 0930012385 /
0911216259
Fax: 251-11-416-3039 PO Box: 259,
Code 1110
Addis Abeba, Ethiopia Sierra Leone
Street (Debre Zeit Road) Next to
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fortune@addisfortune.com
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Tesfa Mogessie
tesfa.mogessie@addisfortune.net
Bottled water testing laboratories inside Ethiopian Conformity Assessment Enterprise.
ith the changing lifestyle

o f E t h i o p i a s u r b a n
population, the use of
treated and bottled water
has been increasing exponentially. The
number of factories involved in the
mineral water is also enormous. It was
in the early 1990's that Ethiopia first got
its own bottled water, when the local
Apex Bottling Company introduced the
iconic "Highland Spring Water".
Any brand of bottled water has in
fact continued to be known as simply
highland until very recently.
Now, after almost a decade of growth,
it is not so uncommon to see multiple
alternatives in Addis Abeba. Other cities
too have their own brands, bottled from
nearby sources.
Industrial Park
Just a year after a 246

million dollar deal was
signed between the
Industrial Parks Development
Corporation (IPDC) and
the China Civil Engineering
Corporation (CCECC) to
construct the Hawassa
Industrial Park, the much
anticipated July 3, 2016
inauguration of the ultramodern, eco-Industrial Park
has been postponed for 10
days more. The decision
came as late as Thursday
June 30.
Page 5
Though it is difficult to clearly identify

the most reliable data, different
agencies suggest that anything from
26 to 60 brands have now entered the
market. Up until 2013, the number
had reached 53, and if the same
progression continues it will continue
to grow by 13pc annually, reaching
around 90 by 2020. The number of
consumers too has escalated over
the years, to a point where some have
stopped drinking tap water altogether.
Me and other adults in the family can
drink tap water, but not my children,
said a mother of twin boys, who just
turned four last month. I stopped
relying on the quality of tap water after
I saw brownish water flowing after days
without supply.
Court
The one-billion-birr money
laundering and tax evasion
case involving 17 suspects
- including five Indians and
six Sri Lankans, as well as
one Ethiopian-registered
and two Dubai-registered
companies - has been
moved on to the next stage.
On June 30, 2016, the
court determined that all
but one of the suspects
must be tried.
Page
Page96
She never said what gave her the

guarantee over the quality of plastic
bottled waters. She simply trusts
that they must have passed through
rigorous standards checks and periodic
assessments.
The quality assurance and certification
processes have not, however, proved so
smooth or coordinated.
There is no point where they can
get information on the - pros and
cons of the product. Most consumers
questioned do not even look closely at
the marks and digits used to indicate
quality and certification.
This brings about a hovering risk
with regard to public safety, while
also instilling a lack of assurance
Electric Power
Ethiopian Electric Power (EEP)
is set to erect two hydroelectric dams on the GenaleDawa and Dabus rivers.
Upon completion, they will
have a 672mw combined
energy generation capacity.
This will be a sizeable
contribution to the existing
5,000mw circulating in the
national grid, and come at
the cost of close to 1.1 billion
birr.
Page 8
and competitive points among those

in the sector. Despite this, an ever
increasing number of companies are
being registered in the sector.
Globally, the bottled water sector is
reported to be worth 157.3 billion
dollars, according to Transparency
Market Research. Reports compiled by
the Ethiopian Central Statistics Agency
indicated that 60 companies have a
registered growth in the value of the
product of 5.7 million Br a year.
When one talks about these bottled
waters, the risk to public health is
always a source of controversy. Several
scientific studies elaborated on the
pros and cons of both the chemical
composition and packaging.
VIEWPOINT
The Brexit vote was a triple
protest: against surging
immigration, London
bankers, and dysfunctional
EU institutions. Its global
ramifications reveal
the influence of the
disaffected working class.
Restoring a sense of
fairness and opportunity
involves ending the Syrian
war, stopping NATOs
expansion, and policing
borders to keep illegal
migrants out.
Page
Page 24
xx
VIEW FROM ARADA

After 43 years of
membership, the shocking
decision by Britain to
leave the European Union
raises pertinent questions.
Do voters want Great
Britain to again be the
Empire on which the sun
never sets? The Brexit
move may also adversely
affect Ethiopia which
depends on both UK and
EU aid.
Page 37
Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016
P ag e 3
THE NUMBERS
49.21
3.42%
Ethiopian Birr/US $
22.2443
Photo: Fortune File
In Ethiopia, bottled water is among

the 57 mandatory standards with its
own country-specific indicators of
standardisation.
The law was asserted as early as 2014,
when the Ministry of Trade (MoT)
gave an ultimatum to the bottlers to
get the waters certified by the Ethiopian
Conformity Assessment Enterprise
(ECAE). Back then, there were only six
companies that were said to fulfil the
quality standards. Now this figure has
climbed to 50.
At the Ethiopian Standards Agency,
there are at least four standards
directly associated with water bottling
- packaging and labelling, specification
of bottled drinking water and standards
on plastic materials for food contact
use.
There is a lack of integration among
this dedicated offices, said Woinshet
Hailemariam, Quality, Food Safety
& Production director at Moha
introduction to Moha.
The Ministry of Trade gave licences
after ensuring that the bottlers obtain
a quality performance certificate
from the Food Medicine & Healthcare
Administration & Control Authority
(FMHACA).
Just a few weeks ago, the Ethiopian
Standards Agency, which is mandated
to set the standards, pointed its finger
at the FMHACA, stating that it had failed
to stop uncertified bottled water from
entering the market. The FMHACA is
a regulatory body that controls and
looks into the safety of these products
Oil US $/bbl
Plastic bottles are seen packed for recycling process.
and, in the case of any defects, enforces

corrective measures.
Based on its assessment, the Agency
reported that there still uncertified
bottled waters on the market.
Bella Water, located in Sebeta town, is
now under investigation by the ECAE
for selling its bottled water without
a quality assurance certificate from
the Enterprise, according to a quality
expert at the ECAE.
The ideal scenario, in this context, is
that any of business entity interested in
entering the bottled water sector must

have a certificate from the FMHACA.
After this, they can get the licence from
the MoT. The Ministry thereafter has
to impose the mandatory standards
checks, before permitting the bottler
to enter the market.
The Authority checks that the business
entity has an adequate and appropriate
storage room, washable walls and
floors in the storage room, adequate
lighting and ventilation, availability
of technical personnel, as well as the
nature of the product. These are the
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major preconditions required to earn

a certificate of competence.
In this respect, the storage room must
be constructed from stone, brick or
similar heat inhibiting materials, and be
constructed in such a way that it does
not compromise the safety and quality
of products
The FMHACA is about the production
line fitness and safe storage - while
the conformity assessment is about
the composition of the water and its
acceptable standards. They check the
odour, taste and colour, the results of
3.42
0.5%
Coffee (Arabica) $/kg
0.21%
which are unobjectionable, according

to the standard.
Labelling is another check that is also
a mandatory. The label has to show
composition, as well as location of
manufacturing and the sources used.
Though endowed with the ultimate
authority of giving a verdict on the safety
of a product, FMHACA never had the
full capacity to conduct the inspection
on its own.
Samples are sent to Europe, which is
particularly important for pesticide
remnants checks.
We have not been able to do pesticide
tests for a while now, and samples
are let free on the market without the
proper certification, said an expert,
on grounds of anonymity.
He only has his strong hope to rely
on, since pesticide remnants have not
been a major issue in quality check
processes.
The shortage on Forex has hit the
mandatory quality assurance of bottled
waters too.
In order to be sure and decide, they
must have assessed the way the bottlers
treat the waters, said Tsigreda Assefa,
a researcher on water and environment
at the Ethiopian Public Health Institute
(EPHI). Such substance if they mix
with the water will cause a long term
health problem on end users.
She too admitted the gap in certifying
(Continued on PAGE 65)
P ag e 4
C o n t i n u a t i o n
Hawassa Industrial Park's

Inauguration on Ice for 10 More Days
The date may have changed but given the significance of Hawassa Industrial
Park in the wider scheme of things, optimism prevails
By MIKIYAS TESFAYE
FORTUNE STAFF WRITER
Just a year after a 246 million
dollar deal was signed between
the Industrial Parks Development
Corporation (IPDC) and
the China Civil Engineering
Corporation (CCECC) to
construct the Hawassa Industrial
Park, the much anticipated July
3, 2016 inauguration of the
ultra-modern, eco-Industrial
Park has been postponed for 10
days more. The decision came as
late as Thursday June 30.
The presence of top ranking
officials, including Prime
Minister Hailemariam Desalegn
and international personalities
was highly anticipated to
participate in the milestone event.
Players close to preparations for
the inauguration quipped that
the day could be marked as the
'eruption of Ethiopia's industrial
revolution'.
Prime Minister Hailemariam
Desalegn is expected to grace
the inauguration proceedings on
July 13, 2016, according to the
senior executive, who also added
that the postponement was due
to attempts to accommodate
the PMs schedule with the
inauguration,
The prime Minister was busy
... even an
international
contractor with
remarkable
capacity, may
struggle to complete
a project of this
magnitude on time.
decorating high military brass
graduated from staff college.
An alternative reason proffered
was that the Regional State
and the governing party of the
Region insisted that the Park
could not be inaugurated while
construction was ongoing,
according to sources who prefer
to remain unnamed.
The fist phase of the project
which covers 100ha of the total
development area of 300ha,
was originally planned to be
christened within nine months.
Upon completion, the park is

expected to create 50,000 job
opportunities and generate a
lucrative one billion dollars in a
year or a year and a half.
Owing to its keen consideration
of environmental sustainability
and its comprehension of
energy and water conservation
principles, the Park's design
includes a high standard waste
water treatment system and
use of renewable clean energy.
The Park will have 35 factory
sheds, as well as 19 buildings
for exhibitions, canteens and
dormitories.
Dubbed the model for
development of other industrial
parks in the country, a lot rides
on the successful construction
of the Hawassa Industrial Park,
within a reasonable amount
of time. The Industrial Parks
Corporations development
projects include parks in
the pipeline for Meqelle,
Kombolcha, Adama, Bahir Dar
and Jimma. These cities should
take note of the intricacies of
constructing an industrial park,
which is more than just erecting
sheds.
Successful completion of
P ag e 5
The Government of Japan has announced the foreign recipients of its 2016
Imperial Decoration. Among them is Newaye Kirstos, Economic Advisor to
Prime Minister.
The Embassy disclosed that the Order of the Rising Sun, Gold and Silver Star,
bestowed upon Newayekirstos for his contribution to further strengthening
economic relations between Japan and Ethiopia.
The Japanese honours system originated in the 1870s, after the Meji
Revolution and is modeled on the European honours system. The first Order,
the Imperial Order of Meji was established in 1875 and later renamed Order
of the Rising Sun.
The decoration ceremony will be held on July 5, 2016, in the presence of ministers, ambassadors,
and other high-level government officials.
Newaye Kirstos has contributed to strengthened industrial relationships between the two countries
and the recent policy dialogue concerning industrial development. He has been Economic Advisor
to the Prime Minister's Office since it was occupied by the late Prime Minister, Meles Zenawi.
NE W S
P ag e -6
Fortune
Vo l . 17 No. 844
J u ly . 3, 2016
Wedding Windfall
Read Less: Know More
Newayekirstos Gebreab Gets Japan's Highest Civilian Award
ERA to Build 130km Adama-Awash Expressway

The Ethiopian Roads Authority (ERA) is set to begin the construction of a 130Km
expressway linking Adama and Awash, an extension project of the Addis Abeba-Adama
Expressway that cost 12 billion Br. Preliminary studies show that the road could
consume 100 million Br per kilometre.
The road is part of the larger Adama-Dire Dewa Expressway project, which was
conceived taking into consideration the high rate of congestion witnessed on the
road to Djibouti.
According to ERA, the Akaki-Bishoftu road corridor is the most highly congested
with 15,000 cars per day, followed by the Addis AbebaJimma corridor with 5,200
vehicles per day. Corridors to Debre Markos, Ambo, Alemgena and Debre Birhan are
also identified as highly congested roads with respective traffic flows of 3,800, 3,600,
3,400 and 1,900 vehicles per day.
ERA is currently constructing a 218Km expressway project from Modjo to Hawassa.
Asphalt road coverage of the country has reached 109,000Km, with spending over the
past 18 years amounting to 218 billion Br. The road sector has also been given chief
priority in the next fiscal year with the government budgeting around 24 billion Br.
All over the world, weddings are big money spinners for
those involved in the industry, and Ethiopia is no different.
One key element of all weddings, and Ethiopian weddings, in
particular, is music. With the end of the Orthodox Christian
Lenten fast signalling a surge in festivities, the demand for
DJs and sound systems is on the rise.
Page 12
Billion Birr Money Laundering Case

Finds Seven Guilty in Absentia
After two years, seven were found guilty, one released and nine are yet to present their defence case to the court
By SAMRAWIT TASSEW
The one-billion-birr money laundering
and tax evasion case involving 17
suspects - including five Indians and six
Sri Lankans, as well as one Ethiopianregistered and two Dubai-registered
companies - has been moved on to
the next stage. On June 30, 2016, the
third criminal bench of High Court
determined that all but one of the
suspects must be tried.
Among the sixteen charged individuals,
seven were convicted as guilty in absentia,
without defence. The remaining nine
suspects under arrest will present their
defence witnesses in October.
The Four Siri Lankans and one Ethiopian
suspect will remain in prison, as the
crime committed can carry a custodial
sentence of more than 12 years.
The legal counsellors of the defendants
were given the option to present the
witnesses in fifteen days, right before
the courts close for session.
Our documents and witnesses are
many in number, Molalegne Mesele,
one of the five defence lawyers present
at the hearing, informed Fortune. It
requires much more time to compile

and come prepared than fifteen days.
The case has been in the public sphere
for a long time now. Indeed, it is two
years since the defendants fell under
the polices watchful eyes, as well as
across various offices, including the
Prosecutors of the Ministry of Justice
and Prosecutors of the Revenue and
Customs authority.
After a series of investigations and
subsequent closures, it was two years
back, in September 2014, that the
ongoing file was opened by the Ministry
of Justice on the grounds of money
laundering and Illegal trading.
A large pile of documents, including
money transfers from Ethiopia to
Djibouti, and then to Dubai, involving
companies not under the suspects
control, are among the many pieces of
evidence produced.
The SDC Berbera Free Zone and
Damko Logistics are next in the line, to
as we look to finalise the investigation,
Alemante Agidew, Deputy Assistant
Attorney General leading the case, said.
He went on to further explain the gap
between some of the pieces of evidence
It is two years since

the defendants
came under polices
watchful eyes.
and the suspects list.
We have had a strong investigative
team, including experts from the INSA,
he informed.
The defence lawyers, however, objected
the charge on a number of counts.
These included the lack of clarity and
particularities on the charge, as well
as the lack of jurisdiction the Ministry
possesses over tax-related issues.
The general claim of the defence was

that Ashrafe Awel and Okapi Impex
Plc, as an Ethiopian and Ethiopianregistered business, are not prohibited
from entering into any sector, including
retail and wholesale, upon importing.
They were charged with engaging
in an investment activity that was
not permitted for foreign investors.
They were importing the small, threewheeled vehicle, known as Bajaj in
Ethiopia, using the Ethiopian company
as cover. This was without having a
business license in Ethiopia. Some of
the employees used false employment
contracts of Okapi Impex Plc and the
others were in the country on tourist
visas. The latter makes them ineligible
for employment and renders their
trading a criminal act, the charge stated.
Ashref Awel, owner of Okapi Impex
Plc, was accused of giving cover to the
14 defendants by pretending that they
were his employees, when he knew full
well that they were employees of the two
unlicensed foreign companies.
Monish Kumar, which the charge
claims to be the mastermind behind
the actions, came to Ethiopia in 2007.
He secured an investment license for
the manufacturing sector, with the

specific objective of assembling the
three-wheeled Bajaj vehicles.
After two years though, the business
closed down declaring bankruptcy.
It was this initial business that the
Prosecutors charge connected to the
activity and followed up.
Monish Kumar is the CEO of the two
Dubai-registered businesses listed on
the suspects list - Dubai Auto Gallery
LLC and Auto-World International FZC.
His two sons, Kumar M. Lakhani and
Vishal Kumar Lakhani, are among those
found guilty.
The 3rd Bench of the Federal High
Court read the prosecutor witnesses
account for more than an hour on
Thursday, June 30.
The Bench went directly to the verdict,
without reading its judicial reasoning of
how it reached its decision.
Presiding Judge Sheleme Kelemu said
that the penalty for those found guilty
would be left until the Bench passes
its final verdict on the case in general.
The law prescribes a maximum of 25
years for money laundering and 15
years for illegal trading.
Ermias T. Amelga breaks

his silence with apology
In the six-page grovelling letter, Ermias firmly states his desire to still
be involved with Access Real Estate
By DAWIT ENDESHAW
After two years in exile and a
month since his release on bail
from custody, Ermias T.Amelga
has broken his silence. He
apologised to homebuyers,
taking full responsibility for
the mishaps at Access Real
Estate (ARE).
"I may have many excuses,
good or bad, and many
unexpected events may have
contributed, but at the end of
the day, someone has to take
responsibility, and I do," reads
Ermias testimonial letter.
This six-page letter was
circulated through email
to homebuyers and others
involved in the process.
The letter also tells his version
of the story, for the first time,
particularly in public fora. The
narration includes policy-level
obstacles, such as citywide no
work orders on leased land.
The bigger part, however,
comes in the pointing of
fingers at specific individuals
and groups a small group
of selfish and unscrupulous
individuals, he calls them in

his letter.
Col. Abraha Alemayehu,
the current CEO of ARE, is
apparently behind the whole
mess, with failures that led to
Ermias arrest, which he called
unfortunate. A homebuyers
association chairman is also
identified as an accomplice in
the entanglement of ARE.
Homebuyers seem to stand
on different sides, with some
He is trying to
complicated
things instead of
becoming a part of
the solution.
opting to follow from a

distance.
"This is a trojan horse, aimed
to divide different interest and
shift blame, a homebuyer who
received the letter commented.
While another believed that
this letter came at the right
moment.
The board and the present
structure has done nothing
except actively placing the
blame on Ermias, another
member of the homebuyers
association told Fortune. If
Ermias says he is ready, then its
time to give him the chance.
In the letter, Ermias stated that My personal involvement will
be necessary for any solution
- and I thus remain prepared
and willing to make all the
required sacrifice to correct
past mistakes.
Ermias claimed that he had
been close to concluding a deal
with a Chinese company, but
that it had failed to materialise
He focuses his blame at Abraha,
whose appointment as the CEO
N E W S
P ag e 7
P ag e 8
N E W S
EEP kicks off Two Hydropower

Projects Worth Over a 1b Br
The construction of the two projects, which have had their feasibility studies completed, are expected to be begin in 2017
By TESFA MOGESSIE
Ethiopian Electric Power (EEP) is set
to erect two hydro-electric dams on the
Genale-Dawa and Dabus rivers. Upon
completion, they will have a 672mw
combined energy generation capacity.
This will be a sizeable contribution to
the existing 5,000mw circulating in the
national grid, and come at the cost of close
to 1.1 billion birr.
For the Genale-Dawa River, this is not the
first dam. With a total project cost of 451
million birr secured from the Chinese
Exim bank, 80pc of the Genale Dawa III
dam project is now completed.
The new Genale Dawa dam, Genale Dawa
VI, is planned to generate 248mw, while
the remaining 424mw will be generated
from the Dabus river - a north-flowing
tributary of the Abay River in southwestern
Ethiopia.
"The projects will be completed within
four years, beginning in 2017," said Miskir
Negash, EEP communications director.
For that selection of contractors has started.
At this point evaluation of pre-qualified
construction companies is nearly finalized.
Genale-Dawa, a perennial 858km long
river, extends across Ethiopia and
Somalia, with approximately half of
its total length running through the
mountainous typology in Bale. Following
the Abay and Wabi Shebele rivers, Genale
Dawa has the third largest catchment area,
74kmsq, with an annual discharge of six
billion cubic metres. It has an estimated
hydro-power potential of 9,300gwh a
year, and is expected to contribute around
5.8pc of the total estimated potential of
the country.
The Genale-Dawa project will be
constructed as an Asphalt Core Rock Fill
Dam (ACCRAD), with a maximum dam
height of 60m, crest length of 650m,
spillway with side channel, and 16.5km
of tunnels and underground powerhouse.
As to the electromechanical works, it will
be designed to have two vertical Francis
Turbines of 125.4mw each. Application for
prequalified bidders was made available

in mid-May, with a deadline of May 18,
2016.
Included in the design is a 400kv, 75km
long, transmission line. This will extend
from the Genale-Dawa VI to the nearest
substation at Genale-Dawa III, where
the generated power will be channelled
to the grid.
The Genale-Dawa III dam will regulate
river flows to the downstream GenaleDewa V project, worth 300 million birr,
and the Genale-Dawa VI. This helps to
ensure that the river is able to produce
reliable power.
These two new projects will increase the
country's energy exports to neighbouring
Kenya. The country will earn 76.6 million
dollars and 73 million dollars from the
Genale-Dawa VI dam, exported to Kenya,
and the Upper Dabus dam, exported to

Sudan, respectively. The country will earn
this amount of money, according to the
Doing Business Index 2016, when the
cost of electricity is at five cents a kwh.
Last year, the government and China
Electric Power Equipment & Technology
(CEP) signed an agreement to construct
the Ethiopia-Kenya Electric System
Interconnection project. This power
line will have a total length of 1,045km
and a transmission capacity of 500Kv.
The Ethiopian side of the project will be
433km long, and extend from Wolayta
Sodo through Konso to the border of
Kenya. It is being constructed with a loan
secured from the African Development
Bank (AfDB). When the entire project is
completed, Ethiopia will earn an annual
export revenue of 500 million dollars,
while 870,000 Kenyan households will

reap the benefits.
A 321km Ethio-Sudan Power Systems
Interconnection was also inaugurated
in December 2013, at a total cost of 35
million dollars. This will export power
from the Upper Dabus Hydropower
project, with a transmission line capacity
of 100mw. This project is planned to bring
150 million dollars in foreign currency to
the country on an annual basis.
Located in southern western Ethiopia, the
Dabus river has a drainage area of 21,032
square kilometres. It is renamed Yabus
when it reaches Sudan. The construction
of this dam's first powerhouse, which will
produce 97.7mw, includes an ACCRAD
with a height of 62m and crest length of
1,300m. Its 326.3mw second powerhouse
will include 20m canal works. The
prequalification application will end on

June 30, 2016
These two projects are part of the second
Growth and Transformation Plan (GTPII),
which scheduled to end in 2020.The
government failed to materialise a plan of
generating 32.6 million mwh, up from 7.6
million mwh in 2009/2010, by the end of
the first Growth and Transformation Plan
(GTPI). There was also a plan to increase
access to electricity to 75pc by the year
2014/2015, which also fell short, by 20pc.
In the year 2014/2015, the total electric
power generated stood at approximately
9.5 million mwh, with an average 9.4pc
increment each year. Out of this figure,
94.7pc was from hydropower, while the
remaining came from wind and thermal
sources. This was 29pc of the set target
during the same year.
Sugar Import Continues with 140,000mt on the Way

Recent weather phenomena alone cannot explain why self-sufficiency in the domestic market remains elusive
By DAWIT ENDESHAW
The Ethiopian Sugar Corporation is
importing 140,000 metric tonnes of
sugar at a cost of 71 million dollars from
India, to be transported in three rounds
of shipments lasting four months. The
purchase has come after the closure
of all the sugar factories in the country,
following the start of the rainy season.
The import represents the latest dent
in the already tattered reputation of the
Corporation after its persistent failure
to keep its repeated promise to meet
domestic sugar demand through local
production.
Stated in the Corporations nine-month
performance report presented to
Parliament, only 44pc of the annul
production target of 535,693tn has been
achieved. Just four of the Corporations
operating factories have contributed
to this production. Most of its other
factories, which are under development,
are marred with chronic delays and over
expenditure.
Despite registering some production
during the nine months of the current fiscal
year, Wonji, Finchaa and Kessem factories
performance was lower than 50pc of
their respective production targets. The
Metehara sugar factory also only achieved
51pc of its production goal, highlighting
the woes the state-controlled sugar industry
the country is facing.
Two extreme phenomena on the
same weather spectrum contributed
to this problem, Gashaw Aychiluhim,
communication head of the Corporation
told Fortune. The recurrent drought has
had a tremendous negative impact on
the cultivation of sugar cane on the one
hand, and the major floods due to LaNia resulted in River Awash overflowing
its banks and causing unfiltered water to
enter into the factories rendering their
production capacity null, on the other hand.
Technical problems ensued following the
floods, significantly diminishing outputs.
Notwithstanding the problems caused by
the weather, the fundamental problem the

Corporation faces pertains to its failure to
deliver completed sugar factories, after
spending billions of birr and missing
deadlines by several years in some cases.
Despite already missing a March 2013
deadline and having spent 97pc of its
budget, progress at the development
of Beles I sugar factory is still at a
disappointing 60pc.
Similarly, the Corporation was supposed
to finalise Kuraz I sugar factory in 2013.
But three years past the deadline and
already having spent 94pc of its budget, the
Corporation has only 83pc completed to
show for its conundrum of a performance.
Moreover, technical failures and shortage
of water in Tendhao sugar factory and
limited engagement of its contractor
and consultant have contributed to its
underperformance of producing only
310tn of sugar.
With 45,000mt of the sugar already having
reached the Port of Djibouti, the purchase
of sugar from Agrocorp International
Pte Ltd is expected to satisfy the local

demand for the time being. The company
had supplied 75,000mt of sugar last
September, when the Corporation
bought 200,000mt of sugar.
Agrocorp, based in Singapore, has
been a consistent supplier of Sugar
in Ethiopia. It is globally recognised
as supplier of commodities such as
pulses, rice, oilseed and sugar. The
company is said to have a presence in
12 countries including a few Eastern
African countries. Its annual revenue
exceeds 1.9 billion dollars, according
to its website.
Over the past ten months the Ministry
of Trade has distributed 404,521tn of
sugar to consumers across the country.
The distribution usually takes place
based on a monthly quota where regions
get 40,500tn of sugar at 45-day intervals;
Addis Abeba gets 11,200tn and industries
in beverage and food processing receive
15,600tn in one month intervals.
Ministry Limits Allowances for Donor Funded Projects

Some pockets will feel the loss but filling this perceived loophole may positively impact beneficiaries
By Nardos Yoseph
The Ministry of Finance & Economic
Cooperation (MoFEC) has issued a
letter limiting the daily subsistence
allowance (DSA) for personnel executing
development organisations' funded
projects. This replaces the project fundbased allowance for all government
project division employees and experts
of development organisations that
take part in projects. However, higher
government officials are not getting the
same treatment.
The fixed payment stipulation sent out to all
29 bilateral and multilateral development
organisations including IMF, USAID,
UNDP and the African Development
Bank includes DSA, transport allowance,
community members allowance for
training, and hardship allowance.
The new disbursement set the DSA for

employees and experts of the funded
projects ranges from 210 Br to 300 Br
a day, cutting off the large sums given
previously as per the budget of the project,
leaving the allowances of federal and
regional government-appointed officials
in the range of 430 Br to over 700 Br.
Furthermore, MoFEC set a 20pc - 40pc
addition to the hardship allowance (paid
to employees for working in hazardous
or remote areas) but the catch is that
these sites must be among the ones the
government identifies as desert areas, in
which employees find it difficult to work.
The Ministry has also fixed the price of
the transport allowance as the price per
kilometre set by the Federal Transport
Authority which is 0.30 Br per kilometre.
If the office provides the transportation,
the allowance will be calculated as a litre
of oil used per kilometre.
Prior to this limitation of DSA, experts

and government employees who work
in donor-funded projects received an
average of 4,494 Br per diem. While
in most stances a civil servant receives
a maximum of 400 Br per diem and
minimum of 70 Br.
Sources in MoFEC explain that the
rationale behind this regulation is that
administrative and other employee
expenditure disbursements are far
exceeding the total budget actually set
for implementation of the development
projects.
However, outside of this limit,
the Government of Ethiopia has a
Proclamation for Charities & Societies
that orders all of the organisations to have
not less than 70pc of budget allocations
reflected in a budget year's expense
for the implementation of its purposes.
Expenses for administrative activities
Ahmed Shide, state minister for

Finance and Economic Coperation.
that include capacity building, transport,

staff salaries and various forms of training
must not exceed 30pc.
Though the field research and data
collection as well as training for target
communities of the project are always
done by the experts and employees
involved in the projects, the limits
imposed by the Ministry results in their
having lower allowances than the officials
who occasionally show up in meetings.
A working paper prepared by the African
Development Bank's Office of the Chief
Economist in February 2014, focused
on uses and abuses of per diems in
Africa. The paper states that the reason
development organisations compete
against one another with higher rates
of allowance, is to get public officials
to commit to specific development
priorities.
N E W S
P ag e 9
Bill Proposes No Minimum Capital, Franchise Regulation

The Bill has come after enactment of the same proclamation five years ago to reform the half a century old Commercial Code
By DAWIT ENDESHAW
Five years after the last major revision
to the more than half a century old law
governing commercial and business
registration and licensing, a new Bill
was tabled in Parliament last week, with
intent to improve the ease of starting a
new business and doing business in the
country.
The latest legislative amendment is part of
the governments drive to make businesses
competitive not just locally but also on
the global stage, through the creation of
an enabling environment in which they
can thrive.
Governments amendment of the existing
Proclamation 986/2010 corresponds
with changing times as well as the need
to reform the proclamations inherent
character.
As such, the amendment is meant to bring
simplicity, efficiency and accessibility to
commercial registration and business
licensing, while it is also intended to clarify
ambiguous articles which may have been
open to interpretation. The Bill also seeks
to prevent the confusion that arises when
trade names are used interchangeably
with company names and to include legal
provision for modern trade practices such
as registration of holding companies,
border area trade, franchising and so on.
Among the major amendments proposed
by the Bill, and in what can be considered
a milestone for the country, is cancellation
of the requirement to present minimum
In a nutshell
The amendment has come after five years stay of the
same proclamation.
The new bill is expected to ease complexity while
starting business.
Registration and certificates will be issued for
franchise agreements made.
The Bill has also introduced the extension of the
business license renewal period to six months.
capital statements in starting a new
business. Except for share companies, the
draft law proposes that start-ups are no
longer required to present documentation
attesting they have deposited in a bank
account a certain minimum capital when
registering a new business.
The rationale for the Bill is that this
requirement limits those with the skill
and ambition to start a business. A recent
report by the World Bank puts paid up
capital required by Ethiopian regulation as
a percentage of income per capita at over
300pc of the regional average.
Use of trade and company names is the
other area of major revision in the Bill.
Their interchangeable use has caused
some mix up in the past. In the proposed
revision, the name of the company,
by which customers usually identify a
A d v e r t i s e m e n t
business, shall appear on the certificate

of commercial registration. Whereas
the trade name appears on a separate
certificate of the business license.
The Bill further introduced the extension
of the business licence renewal period
to six months starting from July to the
end of December, during which period,
businesses entitled to incentives are not
restricted in accessing their benefits. The
draft also proposes that certificates of
competence be a requirement only for
business sectors that must necessarily
provide same and not be required of
sectors which do not require s certificate of
competence as a prerequisite for issuance
of a business licence.
In what appears to be a response to the
changing times and in what some would
argue is an overdue legislative amendment,
179
Ethiopia's Rank
in World Bank's
Ease of Doing
Business Index
the draft law also outlines provisions for

franchises, where a business licence will
be issued for agreements made between
a franchiser and a franchisee.
Last October, the World Bank's Ease of
Doing Business report indicates that
Ethiopia is still below the line measured
across the range of parameters that covers
the process involved from getting licences
to operating a business. The 2015 report
which measured doing business in a
number of segments ranked Ethiopia 176
out of 189 economies. Kenya stands at 151.
This ranking involves assessing eight
indices for starting business. Ethiopia's
place in comparison to last year has
shown a decline by six ranks. For instance,
under starting business it has looked into
11 procedural steps that must be taken
in order to begin your business such
as time, associated cost put in to obtain
commercial registration, obtain a business
licence and reserve a unique company and
trade name. These all take one day each
with an associated total cost of 251 Br.
In the same report, the World Bank
indicated that 85 developing economies
in a global context implemented 169
business reforms in 2015, most of them
to improve efficiency by reducing cost and
complexity.
Having similar objectives, Ethiopia's effort
to bring these changes is yet to be counted
since the reforms are yet to be ratified and
enforced.
The Bill has been forwarded for review
by to the relevant parliamentary standing
committee.
P ag e 10
N E W S
Escalating Death Toll In Disputed Squater Demolitions

Despite the injuries and mortalities, the district is determined to continue with the demolition process
By NARDOS YOSEPH
Homeless squatter demolitions in
Wereda 01 of Nifas Silk Lafto District,
an area known as Urael, turned deadly
on both sides of the conflict on 29
June, 2016.
The aggressive confrontation between
the demolition task force and illegal
residents, estimated to include 5,000
households, ended with the death
of four individuals. The Wereda
demolition task force leader, two
deputy inspectors, and one of the
squatters. Unaccounted number of
others wounded on both sides.
A 25-year-old labourer, Eyesa Ejersa
from another side of the Oromia
special zone Selale, who lived in the
contested zone for the past four years
was the deceased squatter.
The incident happened when police
arrived in the area to help the
Demolition Task Force. At this point,
people began throwing stones at them
with anger, until the policemen and
the task force leader died. After this,
further personal from the Addis Ababa
Police Commission swarmed the area,
beating everyone, according to a single
mother, who was one such victim and
was forced visit the local hospital to
treat her beaten arms.
"It was just after the policemen died;
the police were in shock, hitting
everyone in front of them," said a man
in his 60s, who was a neighbour of
Eyesa, in Block 7. "They struck him
suddenly and he couldn't stand.
He went on to explain how they had to
carry his corpse along the back roads,
in order to get his body back to his
hometown.
We said that he had died of unknown
causes, because we are afraid of the
police," he informed Fortune.
The demolishing task force that went
to the area included four dozers ,
two exavators and huge number of
demolishing team members,a.k.a
Afrashoch.
Such violence during the demolition
of squatter houses is not a first
for the city, however. It was only
two months ago that a demolition
process in Wereda 12 of the Bole
District, in an area called Weregenu,
resulted in similar violence. On this
occasion, though no major injuries
were suffered on the side of the police,
one resident was reported to have
died. This was followed by another
situation in Arada District, Woreda
08, which resulted in 15 people being
taken into custody.
The incident in Urael happened after
a heated argument between the task
force and illegal residents, who have
been in the area for up to 18 years and
claim to have Aerial maps.
Arieal maps are photographs taken
from Airplane view, who most
squatters belive gives them a right to
be accomodated to the master plan as
long as their location does not overlap
with roads or green areas.
The law on regulation too gives
such a room , but never has it been
Debris from demolished houses at Kersa Kontuma village in Nifassilk Lafto District.
practically implemented in a
consistent manner
Illegal residents were told to
vacate the area a day before the
demolition took place, though the
code enforcement law of the city
states that three days notice must
be given. The people state that they
were told that the area is needed
Such violence during the

demolition of squatter
houses is not a first for
the city.
for a French company to construct

an abattoir.
They added that this was not the
first time the wereda has taken
measures against them.
Two years ago, demolition began
on their squatter houses only to be
stopped by the wereda itself. At this
time, they were informed that it was
a mistake and encouraged them to

re-build the houses. They also
promised to provide replacements
to residents that need to vacate the
area for development purposes.
The wereda did not give any
response to the statement, as it
chose instead to mourn the deaths
of their staff members, closing
down the wereda until June 4.
Most of the squatter home owners
have now retreated from the area,
while some remain with nowhere
else to go and no one to turn to. This
is the case for the 24-year-old new
mother, who gave birth to a baby boy
just three days before the demolition.
She now lives under a tent made of
plastic pieces, with no door.
Despite all the violence, the
District is continuing to advance
the demolition process, moving
into another area, Mango, in the
same wereda.
"As long as it is illegal, it should be
demolished," the City Government
Deputy Mayor, Abate Sitotaw, told
Fortune shortly after the Weregenu
demolition, last month.
Ethiopia, World Bank Sign

$100m Addition for PSNP IV
The fourth PSNP will be implemented in 318 districts accross the country to
mitigate food insecurity
By TESFA MOGESSIE
The World Bank (WB) signed a 100
million dollar loan agreement with
Ethiopia to support the latter's fourth
phase of the Productive Safety Net
Programme (PSNPV) that will reach
to 4.5 million beneficiaries across the
country.
PSNP IV was approved in 2014 with a
total cost of 2.6 billion dollars secured
in the form of a loan from the Bank. The
three previous PSNP projects - PSNP I
worth 70 million dollars, PSNP II worth
1.04 billion dollars, PSNP III worth 1.7
billion dollars, were launched in 2004,
2007 and 2009, respectively, had the aim
of improving food security of poor people
in rural areas. The first three phases,
concluded in 2006, 2010 and 2015
respectively, were all financed by WB.
The interest-free loan will be repaid after
32 years.
This deal came just two weeks after a
829 million dollar loan deal the country
signed with the WB for modernisation of
the urban transport system, support for
access to finance for small and medium
enterprises, expansion of electrification
in rural areas, an Eastern and Southern
Africa Higher Education Centre of
Excellence, and improving access to
basic social services and economic
opportunities for communities hosting
refugees. The life span of these projects
is five years.
Earlier this year, the country received

a loan of 933 million dollars from
WB, which pushed the Bank's loans to
Ethiopia this fiscal year to a record high
of 1.9 billion dollars.
The Bank's maximum commitment
recorded in 2016 was 1.6 billion which
increased by 25pc compared to the
previous year. In 2012, 970 million
dollars was recorded as the lowest
commitment. Over the past five years,
the Bank has committed more than 6.7
billion dollars to more than 10 projects
in five years. Until March 2016, the Bank
had 40 active projects with a commitment
value of around seven billion dollars.
State Minister for Finance & Economic
Cooperation, Ahmed Shide and WBs
Country Director for Ethiopia, Sudan
and South Sudan Carolyn Turk, signed
the agreement at the Ministry last week.
"The loan will be used to expand access to
safety net and disaster risk management
system as well as provide nutrition
services and income support to food
insecure families living in rural areas,"
said Ahmed, adding that it was intended
to scale up PSNP VI supports in response
to the El Nio-induced drought by safety
net transfers to chronically insecure
households.
This money will be spent for project
lasting from July to December 2016.
The major components of the Safety Net
Programme include regular transfer of
PSNP IV is
providing regular
cash or food
transfer of eight
million poor
people in those
areas which are
most often hit by
drought.
cash or food to eight million chronically

food insecure people in areas most often
hit by drought. The programme also
supports scalable response mechanisms,
sustainable community asset human
capital investment and capacity
enhancement for crop and livestock
production to improve the livelihoods
of farmers.
"The programme is helping the country
further reduce extreme poverty
and promote shared property by
strengthening the resilience of the
poorest households to natural shocks.
The additional financing will help
ensure that the poorest people in drought
affected areas continue to receive reliable
support from the government through
to the next harvest - a period when food
needs are always acute," Turk remarked
after the signing.
Ethiopia was hit by the worst drought in
decades, in which 18 million people failed
to receive immediate food assistance.
The Banks commitment has increased
by 17pc annually amounting to about 1.3
billion dollars over the last five years on
average. The loan the country received
from WB is four times the sum of 405
million dollars secured by neighbouring
Kenya this year. The Bank approved its
first loan to Ethiopia for highway and
bank development assistance in 1950.
PSNP IV will be implemented in 318
districts across the country.
P ag e 11
P ag e 12
F e a t u r e
Wedding Windfall
All over the world, weddings are big money spinners for those involved in the industry, and Ethiopia is no different. One key
element of all weddings, and Ethiopian weddings, in particular, is music. With the end of the Orthodox Christian Lenten fast
signalling a surge in festivities, the demand for DJs and sound systems is on the rise. In addition to the huge increase in work,
price increments are also witnessed at this time. With a slow period soon to follow, DJs and sound men work as much as
physically possible to help them through the rest of the year.
erihun Bekele, in his mid-50s,

is a veteran amateur sound
man. When he started working
in the role for the then Sevens
band, it was his emotion and interest
that pushed him to get involved. He
worked with the band for eleven years.
He did not foresee, however, that he
would fall in love with the profession.
At the time he joined, the band was
well-known in Addis Abeba. Tsedanya
Gebremarkos and Shiwndagn Haile
were among the founding members of
Sevens, which disbanded five years ago.
For Zerihun, it was not the money that
mattered, but rather the passion he had
for music.
"Though I was paid only around 50 Br
on a monthly basis, I was happy to be
associated with the band," he said.
Express band was another big musical
group that Zerihun joined up with in
his role as sound man. Seven years
was enough for him with that outfit,
which was founded in 1994 by three
musicians - Dereje Tefera, Kibret
Zekiwos and Feleke Hailu. The band
provided backup music for legendary
singers, including Theodros Kassahun
(Teddy Afro), Dawit Melesse and Zeritu
Kebede.
After accumulating 18 years of
experience as a sound man, he retired.
It was at that he made a business out
of his rich experience and exposure.
Speakers and microphones displayed in Merkato where shops of this kind are most common.
He ventured into sound system rental

for small social events, offering an
old sound system for a minimal price.
The system includes a microphone,
amplifier, speaker and mixer.
Zerihun has been leading a pensioners
life but he still has the energy to work.
Slim in stature, with a crisp face and
wearing a bathrobe-like coat in the
rainy weeks of June, he described how
he makes a living from his business.
I used to have plenty exposure while
working for two bands and got to know
many people, he said. The people I
knew through this work now call me
seeking a sound system.
He charges between 3,000 Br and 4,000
Br for the rental of his equipment.
The price is different depending on
the length of time the customers wish
to keep the system. For dinner or
weddings, he charges 3,000 and adds
an extra charge of 1,000 Br for both
dinner and lunch.
If he is present to operate the system at
an event, he earns an additional 500 Br.
"I prefer to play at weddings to make
a larger sum, as well as to enjoy the
feast, he added.
He also said that his work is seasonal.
In May and June, the systems rent will
be increased by 60 Br to 100 Br. This
is because it comes after the dominant
Ethiopian Orthodox Church faithful
break their 55-day-long Lenten fast.
P ag e 13
Photo: Fortune File
With the advent of the Easter feast, the

annual wedding celebrations are rife.
In Addis Abeba alone, 144,227 people
tied the knot between 2009/2010 and
2013/2014. This figure increased by
85pc in 2014/2015.
Another veteran who may have played at
some of these weddings is DJ Dani, who
began in the same business 15 years
ago. DJ Dani claims to be a pioneer who
recruited and coached some of Addis
leading DJs. He is one of those who
started Sergwon Bedeje, which literally
translates as wedding by DJ.
In the early years of the 1990s, he
frequented clubs and enjoyed playing at
local weddings in his neighbourhood.
He said that he used reel cassettes to
record songs in the old fashion. That
is how he evolved into a businessman,
importing and renting out the sound
system. China and Dubai are the
destinations from which he imports his
equipment. Sitting at his fancy office
around Bole, he attracts customers with
impressive displays of all his equipment.
Physically well- built, he is proud that
he runs a successful business.
I used to work as a DJ for two years
by renting out a sound system, he
explained. Back then, I earned
between 1,500 Br and 2,000 Br for a
single occasion.
Now, however, his income in one
year has leapt up to 1.2 million Br,
he calculates, assuming that he rents
out his sound system for at least 10
concerts.
He said that he rents out his system for
a range of 6,000 Br for weddings and
120,000 Br for concerts.
The 6,000Br could be increased to
18,000 Br if he takes a sound crew
to support him at the wedding. The
transport cost and fee for assistant
workers increases the rental fee.
Like Zerihun, Dj Dani contemplated the
advantage of the wedding season. The
income Zerihun earns, is, however,
proportionally lower than what Dani
achieves.
This season gave me a big return,
Dani teased. We are so busy now.
He went on to explain that the rental
price has increased by 20pc this June.
The sound system must be serviced,
which is the main task of the sound
man, in addition to adjusting the volume
of the sound and ensuring quality.
We believe that we give a better service
with a different capacity of sound
system, depending on the size of the
event, he said.
For weddings, the sound system will
have a capacity of 500 watts. He also
has 13,000-watt sound system, which is
used for concerts and large gatherings.
DJ Dani also rents to other sound system
operators and Dj Zelalem Fikre Silassie
is one his customers.
Dj Zelalem rented the smaller sound
system for 6,000 Br, after he contacted
Dani to use it for weddings that last for
five to six hours.
He too is busy this season as there are so
many weddings demanding his services
this season.
When this time has passed, I will be
idle, Zelalem explains. I have to use
the money I collect during this period,
so have to work as hard as possible.
The sum he charges for a wedding is
between 20,000 Br and 30,000 Br 12,000 Br more than what DJ Dani
charges.
F e a t u r e
"Mine is a bit more expensive, because

of the system rent and the payment for
crews," he said.
A couple, Hiwan and Henok, who
had hired Dj Zelalem to play at their
wedding, thought the additional expense
was worth the while. In fact, they said
it topped the list of things they thought
should be included to make their
wedding a joyous event.
"This is a once in a lifetime opportunity,
said Hiwan. So, I believe that we should
not miss out on it.
The couple was initially simply going
to use a flash drive and speaker, but
"We had to enjoy our wedding day at any

cost, Henok said. "And the 20,000 Br we
incurred for the rental of the system was,
therefore, a sound decision.
ultimately decided that it would not be
possible.
"We had to enjoy our wedding day at any
cost, Henok said. "And the 20,000 Br
we incurred for the rental of the system
was, therefore, a sound decision.
Wedding guests, who were not aware
of the cost incurred, said that the epic
mood of the bride and the groom should
be expressed through music. They

believe that to make a wedding joyous,
there will, of course, be a cost to incur.
"I enjoy the music aspect of wedding
ceremonies," said Saba Bezabih, a
guest at Hiwan and Henoks wedding.
"A calm ceremony could not express
the excitement.
Guests enjoyment and adopting to the
new "Wedding by DJ", pushed prices
higher.
Giving testimony to this rise in the price
of sound system rentals is Abiy Legesse,
owner of Abiy Electronic Shop at Yirga
Haile commercial building.
"This month the rental fee is increasing,"
he said. "I am importing mixers,
microphones and amplifiers from
China," he said without disclosing
prices.
However, the price tags displayed on
his range of speakers showed prices of
10,000 Br to 20,000 Br, with a profit
margin of approximately 500 Br to 800
Br, respectively.
The average price indicated in the
popular Amazon online shopping
platform in the past month is widely
varied.
Microphones can be priced up to
10,000 dollars, while stereos cost
from 90 dollars to 11,000 dollars, with

mixers and speakers going up to 11,500
dollars and 40,000 dollars respectively.
In the year 2014/15, the country
imported 12 million dollars worth of
sound systems - up 37 pc compared to
the previous year. This also represents
a four-fold increase from import levels
in 2010.
Abiy claims that the majority of his sales
are to those who run a rental business.
The price he sets for a mixer is 8,000 Br,
while microphones and amplifiers fetch
4,000 Br and 2,500 Br, respectively.
"Since May, the price for microphones
and amplifiers has increased by 50 Br
and 120 Br, respectively," he added.
Beginning his business two years ago
with 200,000 Br in start-up capital, Abiy
has amassed half a million Birr.
Sound systems and businesses that
provide other wedding services know
the wisdom of taking advantage of the
peak season. From August to January,
the decrease in the number of weddings
coincides with a decline in the rental
price of sound systems, though there
is a shorter wedding season that takes
place around Timket (the Epiphany)
in January.
P ag e 14
A D V E R T I S E M E N T S
P ag e 15
///
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F e a t u r e
Photos: Fortune File
P ag e 16
Ethiopia on Track to Become

Africas Industrial Powerhouse
Ethiopia continues to come to attention for its outstanding economic growth and obvious provisions
for prioritising industry. Jostein Hauge, PhD candidate, University of Cambridge and Muhammad Irfan,
PhD student, A Political Economy of Subsidies and Countervailing Measure in International Trade and
Development Issues of Policy Space and the WTOs SCM Agreement, University of Cambridge, describe
positive indicators for the future.
Ethiopia seems to be attracting the
attention of economists interested in
Africa, and for good reason. Except for
Rwanda, Ethiopia is the only African
country whose economic growth has
been consistently high for more than
a decade without relying on a natural
resource boom.
Between 2004 and 2014, per capita
growth in Ethiopia was eight per cent
per year. This was the highest on the
continent during this period, and is
impressive by any standard.
The growth has been attributed
mainly to a construction boom and
increased agricultural productivity.
But manufacturing has also been
vital. It has grown at 11pc per year
and manufacturing exports increased
more than eleven-fold. This was
largely thanks to the increasing export
earnings of the footwear and apparel
industries. The growth represents
more than a doubling of manufactured
exports share in total merchandise
exports, which itself more than
quintupled during the period.
Nevertheless, manufacturing as a
share of gross domestic product in
Ethiopia remains at five per cent, well
below the African average of 10pc.

The country also scores below the
African average on diversification,
export competitiveness, productivity
and technological upgrading.
Despite this, it is not a long-shot to
predict that Ethiopia will catch up
with countries like China and Vietnam
in some low-tech manufacturing
industries in the near future. These
are industries for which labour costs
are very important. And right now
you would be hard pressed to find a
country in the world that has cheaper
labour than Ethiopia. Even beyond
these obvious industries, there are
reasons to believe that Ethiopia might
be on the right track to catch up with
more advanced economies.
The developmental state
First is the countrys developmental
orientation. In many ways it resembles
that of successful catch-up experiences
in East Asia, such as Korea and
Taiwan, with a relatively authoritarian
corporatist structure and centralised
economic planning.
Meles Zenawi, Ethiopias recently
deceased prime minister who ruled
from 1995 to 2012 and whose legacy
remains strong in todays ruling

political coalition, repeatedly
expressed admiration for the East
Asian experience. He stressed that
its success was based on a prudent
combination of market forces and
state intervention. The State not
only provided basic infrastructure
and services but also a conducive
environment for the private sector.
The second reason to be optimistic
about Ethiopias prospects is the
impressive industrial policymaking
capability it has accumulated
since the Ethiopian Peoples
Revolutionary Democratic Front
government came to power in
1991.
The quality of this capability
becomes clear if you read the
Growth and Transformation
Plan covering 2010-2015.
According to economist Kenichi
Ohno, the Plan is unusual in its
brevity, coherence and strategic
direction. Priority manufacturing
industries were designated based
on resource availability, labour
intensity, linkages to agriculture,
export potential and relatively
low technological entry barriers.
They include apparel and textiles,
agro-processing, meat processing,
leather and leather products, and
construction.
Supporting institutes have been set
up for each industry to coordinate
the value chains effectively, for
example by ensuring efficient supply
of inputs to manufacturers and to
assist firms with technological
upgrading.
Two state-owned banks, the
Commercial Bank of Ethiopia
(CBE) and the Development Bank

of Ethiopia (DBE), provide most
credit to firms in these industries.
Foreign banks are simply not
allowed to operate in Ethiopia.
The understanding is that they will
be allowed in only when domestic
banks have developed the capacity
to compete.
Education and infrastructure
While the Ethiopian government
is formulating policies to support
specific industrial sectors, for
F e a t u r e
Foreign banks are simply

not allowed to operate
in Ethiopia ... they will
be allowed in only when
domestic banks have
developed the capacity
to compete.
Ermias T. Amelga . . .
of Access came after Ermias had
single-handedly selected him.
He is just the same ol' same ol'
Ermias, Abraha said in response
to the accusation. He is trying to
complicate things instead of becoming
a part of the solution.
He went on to explain how Ermias
had told the board that he had found
Chinese partners, but when asked to
bring them to hold a discussion he
refused.
He said he had signed an agreement
with them, explained Abraha. We
also asked him to bring over the
agreements, but again he refused.
Ermias, in the same letter, wrote that
the management and the board had
agreed not to sign documents.
This claim, however, was countered
by Abraha, who said that Ermias
had tried to convince him to sign
documents related to transactions
for the Gabi Real Estate and the old
Imperial Hotel without the knowledge
of the board.
Nuredien Mohammed, general
manager of Alle Bejimela, and
chairman of the technical committee
organised to resolve the stalemate
at ARE, declined to comment on the
issue.
In 2012, it was said that Access Real
Estate had sold the Imperial Hotel to
the Metal Engineering Corporation
(MetEC) for 83 million Br. This was
sold to the latter by the original owner,
the Asefaws Family Plc, for 57 million

Br to Access.
All his narration is simply to create
public confusion, Mebrat W. Tenssae,
a board chairperson of ARE, told
Fortune.
In his last statement, Ermias expressed
his intention to still maintain an
(Cont'd from PAGE 7)
involvement in the process.

"I stand ready to make all the needed
sacrifices to achieve our mutual
objectives, he stated.
ARE is now under an audit process
by the government, which has almost
been completed. It is said that the
report is to be announced soon.
Hawassa Industrial . . .
the Hawassa Industrial Park is also
paramount, given the complete failure
of the government to develop a single
park during the first phase of the Growth
& Transformation Period (GTP I).
We know that the past five years, we
didnt succeed in fulfilling our aims,
Arkebe Okubay (PhD), board chairman
of IPDC, told Fortune in October 2015,
while commenting on the complete lack
of progress in developing industrial
parks in the period, despite planning
to build five.
Mindful of the urgency to deliver in
Hawassa which also rises from the need
to bring rapid industrialisation to the
country, the project enjoys top priority
status by the Corporation.
Things are going in the best way we can
imagine, Arkebe had said regarding the
progress of the park in October 2015.
From the onset of the project, the
Corporation attempted avoiding
the debacle that lasted for years,
surrounding construction of just the
first phase of the Bole Lemi Export

Processing Zone, one of the parks
under its administration. There is no
comparison between the two projects,
however. Albeit the Hawassa Park is a
few months overdue, it is worthwhile to
underscore that even an international
contractor with remarkable capacity,
may struggle to complete a project of
this magnitude on time.
Dwelling on the missed deadline,
however, is an exercise in futility, as
a senior executive at the Corporation
noted, on conditions of anonymity,
that construction at the Park has
been completed since June 30, 2016.
This is good news for the several
multinational companies who have
made commitments in the Park taking
around 80pc of the factory floor. Among
them are H&M, PVH, Arvin Limited and
others.
Some of the local apparel and textiles
companies have been afforded generous
government loan incentives to set up
shop in the Park.
most of the past 20 years the

federal budget has been devoted to
policies that are more horizontal
in nature, like education and
infrastructure. Results so far are
impressive.
Enrollment in primary schools
has increased from below 20pc in
the early 1990s to about 94pc in
2012. The number of universities
has increased from one in 1990 to
more than 30.
And the government has invested
massively in infrastructure
development, focusing on transport
and power generation. The road
network expanded from 26,550km
to 53,997km between 1997
and 2011. The country is set to
quadruple its power generation
capacity when the Grand Ethiopian
Renaissance Dam on the Nile is
finished in 2017/18. One of the
largest hydroelectric power stations
in the world, the dam will generate
6,000MW.
Feeding on the boom in
construction, cement production
has grown dramatically since 1999.
The average annual growth of
cement production has been more
than twice the world average. As
a result, Ethiopia is now the third
largest cement producer in Africa.
State support has been both direct
and indirect. Direct measures
include entry incentives for
domestic firms, like long-term
loans for capital investments, easy
access to mining resources and the
allocation of foreign currency on a
preferential basis.
Additionally, government provision
of transport and energy has been
crucial.
Like the cement industry, the
Ethiopian floriculture sector has
made important contributions to
overall economic development.
Cut flower exports increased from
three tons in 2003/04 to more than
50,000tn in 2011/12, substantially
raising export earnings. From 2007
to 2012, the sectors employment
doubled from 25,000 to 50,484.
P ag e 17
The industry grew from a single

firm in 2000 to about 100 in 2014.
The industry has also created
indirect jobs through the expansion
of horticulture. Related activities,
such as packaging production, cold
chain logistics and air transport
have all benefited.
While Ethiopian firms initially
kicked off the floriculture industry,
foreign firms have increased their
investment. In 2012 they accounted
for 63pc of all firms operating in
the sector.
This foreign investment has
contributed to technological
development and improved market
access.
Foreign investors say Ethiopia
has become an attractive
investment location because of
natural endowments such as land
and altitude, cheap labour and
government incentives. These
incentives include tax holidays on
profits for up to five years, duty
free privileges on all capital goods
and the provision of construction
material.
Subsidised loans have been
the prime source of long-term
investment financing for firms in
the floriculture industry. Almost
two-thirds of firms in the industry
have relied on loans from the
Development Bank of Ethiopia. And
private banks, seeing the success
of these loans, have also started
lending to the industry.
Sectors destined for future success
Both the leather products and
the textile and apparel sectors
have been designated as top
priority manufacturing industries
in the recently released five-year
development plan (2015 to 2020).
One reason for this is because
they have strong linkages with
the agricultural sector as they use
inputs from the livestock and cotton
sectors. They are also both labour
intensive, thus absorbing labour
from the agricultural sector, and
have major export potential and
low entry barriers.
To b e c o m e i n t e r n a t i o n a l l y
competitive, the Ethiopian
government has invited foreign
investors to provide much-needed
investment capital and technological
capabilities. A slew of incentives has
been created to induce these firms
as well as domestic ones that can
meet international standards to
export. These include:
subsidised land rent in industrial
zones;
generous credit schemes;
100pc exemption from the payment
of duties on imported capital
goods and raw materials for the
production of exports; and
five-year tax holidays on profits.
Export figures from the past two
years indicate positive trends for
both industries. But the results are
not yet near where they need to be
to make a significant contribution
to structural change.
However, considering all the
positive signs, Ethiopia might
very well be on its way to become
Africas industrial powerhouse.
Source:qz.com/717228
P ag e 18
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used to refer to them or their products. Copyright 2016 Dell Inc. All rights reserved.
P ag e 19
P ag e 20
N E W S
EU Pledge of 100m Euro to Stem Ethiopian Migrant Flow

By TESFA MOGESSIE
The European Union (EU), through its EU
Trust Fund, has made a commitment of 100
million Euros to curb the flow of migrants
fleeing Ethiopia by mitigating pushing
factors through the creation of jobs for
would-be migrants.
In view of the massive inflow of migrants
from Africa and the Middle East due
to poor economic realities and volatile
political situations, the EU is implementing
measures to dry out pushing factors.
Member countries of the Union are stepping
up efforts to bolster border checkpoints to
minimise the influx of migrants crossing
deep into European territories.
The European Parliament, its Council
and Commission agreed on June 22,
2016, to the Commissions proposal for
a European Border & Coast Guard to
reinforce cooperation in border control.
The agreement on the creation of a
coast guard shows that Europe is able
to act swiftly and resolutely to deal with
common challenges, a Commission
press release quoted its President, JeanClaude Juncker as saying. As of now,
Europe treats the protection of its borders
as a common mission of solidarity,
Juncker added.
Migration remains a hot topic of debate
and discussion and some EU Member
States have sealed off their borders by
reinforcing their coast guards, while
others including Germany opened their
doors wide. However, the common stance
they have agreed on is, the need to nip
out-migration at the source, be it from
Photo by: Ayenew Alemayehu
Ethiopia which hosts 750,000 refugees from Eritrea, South Sudan and Somalia contributes significant share of migrants to Europe.
EU Delegation Head to Ethiopia Ambassador Chantal Hebberecht while breifing media at Desalgn Hotel in Addis Abeba.
Africa or the Middle East. The EU has

channeled funds for source countries,
with the belief that more jobs should be
created to absorb those who might be
tempted to migrate and encourage them
to remain at home.
Ethiopia, one of the beneficiaries of the
fund, currently hosts some 750,000
refugees from South Sudan, Eritrea and
Somalia. The country has also contributed
significant numbers of migrants from East
Africa to Europe via the Mediterranean Sea
- a treacherous journey which has tragically
claimed the lives of thousands drowned
when substandard boats have capsized.
The intended outcome of this use of the
Trust Fund to address a complex issue and
the need for cooperation, has been clearly
expressed.
"Improving the livelihood of farmers
in drought-affected areas, including
central and northern Ethiopia, and create
more jobs," said Ambassador Chantal
Hebberecht, head of EU to Ethiopia.
Individual European countries have also
pledged aid to Ethiopia. The European
agreement was signed just a month after
Italy endorsed 2.3 million dollars to
Ethiopia for a similar programme.
Italy is one of Europes top receivers of
asylum applications by Ethiopians with
95pc of the 6,350 that irregularly migrated
to Europe in 2015. Official reports of Italian
authorities also indicated that of the 3,500
immigrants registered last year up to 60pc
were found to be Ethiopians while trying

to enter the country claiming they are
Eritreans or Somalis.
The initiative funded by the Italian
Development Cooperation came about
after a collaborative screening to identify
beneficiary weredas by UN agencies and
the Government of Ethiopia. As such, the
initiative targets around 80,000 direct and
over half a million indirect beneficiaries
across selected weredas in Amhara, Oromia
and Tigray states. A recent study focusing on
the status of returnees of irregular migration
to Ethiopia showed that 22pc of the total
160,000 people are from Tigray State.
On June 14, President Juncker and Ethiopian
Prime Minister, Hailemariam Desalegn,
signed a strategic engagement agreement
on a range of issues, including regional
peace and security, counter-terrorism,
social and economic development, climate
change and migration.
Between 2014 and 2020, the EU under
the National Indicative Programme (NIP),
plans to provide an initial 745 million
Euros to support government-led projects.
EU funding makes up around 34pc of the
total aid assistance Ethiopia received in the
past two years.
In 2015, with nearly 300 companies
from EU operating in Ethiopia, the trade
volume stood at three billion Euros.
The EU market absorbed approximately
33.6pc of the Ethiopian total exports,
whereas 19.5pc of imports to Ethiopia
came from Europe. The EU-Ethiopian
relationship dates back to 1975 at which
time an EU Delegation office in Addis
during the Dergue's regime.
P ag e 21
DASHEN BANK S.C

Open Tender No. DB/001/OT/2016/17
CALL FOR TENDER
1. Dashen Bank invites all interested bidders for the supply of the following listed items for 2016/17 fiscal year
S/No.
Description
Category-A
Various Kinds of Stationery Materials
Category-B
2
Cleaning Materials such as Abujedi, Air freshener, Alcohol, Bleach, Dettol, Laundry soap, Omo, Mops, Toilet soap, waste basket,
plastic broom with wooden handle, Zembaba broom, Vim and others.
Category-C
3
Different types of Toners for Fax Machine Cartridge Tonner L-150/1728, L-380, HP LJ Printer Tonner 1200, 3005, 3015, 4050/4000, 5200, Olivetti Passbook
Printer Ribbon, Tally Printer Ribbon 2030/2240, and Ribbon for Epson printer 7754 and others
2 .Interested and eligible bidders are invited to purchase the bid document
starting from July 4, 2016 from Logistics and Property Management
Department, Beklobet Adjacent to Garad Building 1st floor, having paid
the non refundable fee of Birr 100 for each category at Dashen Main Bank
Account Number 180020002 and present copy of credit advice ticket
during the office hours (Monday to Friday 8:00 12:00am, 1:00 - 5:00pm
and Saturday 8:00 6:00am).
3. Copy of renewed Trade License, VAT Registration Certificate and TIN Certificate
are required while submitting the bid document.
4. 2% of the offer shall be presented as a bid bond in the form of bank guarantee
or cashiers payment order (CPO).
5. The sealed bid document shall be placed in the box prepared for this purpose
on or before July 19, 2016, 6:00am at the place mentioned under No. 2
above.
6. Failure to comply with any of the conditions stated above from No.2 to 5 shall
result in automatic rejection.
7. The Bank reserves the right to accept or reject the bid either partially or fully.
N.B 1. For the items stated under category C, bidders should present authorized dealership certificate.
2. For any information you may contact Tel No 0114 66 45 44 Ext. 125/126
Vacancy Announcement
Equatorial Business Group Pvt. Ltd. Co.
External Vacancy
Equatorial Business Group Pvt. Ltd. Co. invites applicants for the
following positions.
1. Position:
Sales Manager, Veterinary (EPB)
Qualification: DVM in Veterinary Medicine
Experience:
8year's of which 3 should be in a senior position.
Duties:
Plans, directs, coordinates and controls the
purchase, storage, sales and distribution of veterinary pharmaceuticals
as per the rules and regulation of veterinary drug and feed
administration and control Authority of Ethiopia and Company Policies.

Head Count:
1 (One)
Interested applicants can submit or send applications with their nonreturnable CVs and testimonials within 10 days from the date of this
announcement.
Equatorial Business Group Head Office,

Human Resource
Saris Road (Near Addis Tyre Sh. Co.)
Room No. 203
P.O. Box 8964, Tel. 011-442-49-55
Addis Ababa
No Position
Required
Cement
1 mill &
Packing
Supervisor

Weigh Bridge
and Cement
Dispatch
Supervisor
Position
Requirement
Work Experience
Chemistry,
Chemical,
Mechanical &
Electrical
Engineer
BSc with 4 years of

experience
12+3 with 6 years of
experience
in cement and similar
plants in Supervisory level.
Marketing,
Accounting,
Economics &
Management
BA with 4 years work

experience 12+3 with 6
years of experience
Female applicants are highly encouraged.

Work Place . Factory (Derba)
Terms of employment : . Permanent
Salary As per company
scale
Interested applicants who fulfil the above requirement can submit

their application letter and copies of relevant testimonial documents in
person to the following address within 7 working days of this vacancy
announcement
Derba Midroc Cement PLC Head Office

Nani Building/Reception / Tel: 011 5 54 98 88
P ag e 22
P ag e 23
P ag e 24
C O M M E N TA R Y
The historic referendum to quit the European Union (EU) by the majority of the British public has sent shock waves across the world and sparked
financial market tremors. From New York to London and Hong Kong, stock markets tumbled sharply, fearing the potential risks in all unknowns,
writes Eyob Tesfaye (PhD), a macroeconomist.
Brexit: Who Would Take the Hit?
hough the Brexit votes were

driven more by concerns
about immigration and
unease about EUs domination
in Brussels, it has far reaching impacts
that go beyond the UKs borders.
The decision to leave the EU has
unleashed considerable forces of
market uncertainty, with the spillover
effects already starting to haunt the
global economy. Major currencies
plummeted last week and jittery
investors took refuge in safest places
such as the US dollar, Japanese yen
and gold.
The International Monetary Fund
(IMF) has already released a new
economic projection that the Brexit
into 2016 could reduce global growth
by 5.6pc in its worst case scenario.
With the caveat that nothing is fully
clear in the immediate aftermath of
the Brexit, there is little doubt about
the consequences of referendums
outcome to the global economy,
including Africas.
A valid lesson from the turbulence of
the past eight years is that financial
links transmit economic calamities
from one country to another almost
instantaneously and often amplify the
original shock. The precise impact
of the Brexit on the economy of
Britain will depend on many factors,
including the future trade arrangement
The UKs decision to leave the

EU will also increase the pricing
of bonds, making it difficult
for African countries, including
Ethiopia, to access the Eurobond
market for investment funding.
it will have with the remaining 27 EU

members. Although the vote changes
nothing for at least two years, it kicks
off what are certain to be complex and
arduous negotiations between them.
Currently though, Britain is the most
important trading partner for the EU,
if the UN trade data are any help to
refer to. The EUs exports to the UK
are worth three per cent of the blocs
GDP, while its imports reach 2.4pc.
Although most EU member countries
run trade surpluses, they register
deficits with the UK when it comes to
services, mainly financial in nature.
If the UK and EU manage to reach an
amicable separation agreement by
giving, for instance, the UK a similar
status to that of Switzerland and
Norway, allowing it free trade access,
there is a possibility of mitigating
the economic effects of the Brexit.
However, if the EU applies punitive
Customs duties on goods, services
and investments from the UK, as
well as erects non-tariff barriers and
restricts Londons ability to conduct

Euro dominated financial transitions,
the disruption would be severe with
the possibility of igniting a prolonged
recession.
Apart from Europe, Britains decision
to quit Europe has also raised the
prospects of sustained apprehension
in the rest of the global economy as
countries struggle to surmise the
possible impacts of the exit.
The US economy is one of the
candidates to feel the consequences
of the exit. The ripple effects will affect
US exports, investments, employment
prospects both in England and back
home. American investment in the
UK is now reaching a whopping
600 billion dollars. The US also
uses Britain as a gateway to access
European markets for its exports,
reaching around 60 billion dollars. If
the UK goes into recession as a result
of its divorce from Europe, it will no
doubt jeopardise Americas access
to the EU market. It will also have its
own ramifications on American banks
operating in Europe.
Again, if the British pound continues
its plunge and sparks a Euro-wide
crisis, it is likely to cause the dollar
to be too strong, thereby reducing
Americas competitiveness.
Moreover, a weak pound and Euro
could force the US Federal Reserve

to put on hold its interest rate hike,
which could affect productivity and
trigger the accumulation of debt.
While the UKs exit from the EU
would most certainly cause turmoil
in Europe, the effects of Brexit on
Asian economies, including China,
is somehow limited to Hong Kong,
Vietnam and Cambodia. These are
countries with strong ties with the UK;
they may likely feel a noticeable hit.
For China, the second largest economy
in the world after the US and currently
slowing down significantly, the exit
cannot be good news. Chinas bilateral
trade with the UK has now reached
80 billion dollars and the Brexit
could have an outsized impact on
its future export performance. Even
more worrying, should the exit fatally
damage London as a premier global
financial centre, the value of Chinas
investment will be impaired. China
has to find an alternative before it is
too late.
Other emerging economies too will
also be affected by the UKs exit.
Brazil, which was once the darling
among emerging countries, is the list
of countries to suffer the most. The
Brexit will complicate its efforts to
stop its economic breakdown, due to
VIEWPOINT
By Jeffrey D. Sachs
The Meaning of Brexit
he Brexit vote was a triple

protest: against surging
immigration, City of London
bankers, and European
Union institutions, in that order.
It will have major consequences.
Donald Trumps campaign for the
US presidency will receive a huge
boost, as will other anti-immigrant
populist politicians.
Moreover, leaving the EU will wound
the British economy, and could well
push Scotland to leave the United
Kingdom to say nothing of Brexits
ramifications for the future of
European integration. Brexit is thus
a watershed event that signals the
need for a new kind of globalisation,
one that could be far superior to the
status quo that was rejected at the
British polls.
At its core, Brexit reflects a
pervasive phenomenon in the highincome world: rising support for
populist parties campaigning for
a clampdown on immigration.
Roughly half the population in
Europe and the United States,
generally working-class voters,
believes that immigration is out of
control, posing a threat to public
order and cultural norms.
In the UK, these two powerful

political currents rejection of
immigration and class warfare
were joined by the widespread
sentiment that EU institutions are
dysfunctional.
In the middle of the Brexit campaign

in May, it was reported that the UK
had net immigration of 333,000
persons in 2015, more than triple the
governments previously announced
target of 100,000. That news came
on top of the Syrian refugee crisis,
terrorist attacks by Syrian migrants
and disaffected children of earlier
immigrants, and highly publicized
reports of assaults on women and
girls by migrants in Germany and
elsewhere.
In the US, Trump backers similarly
rail against the countrys estimated
11 million undocumented
residents, mainly Hispanic, who
overwhelmingly live peaceful and
productive lives, but without proper
visas or work permits. For many
Trump supporters, the crucial fact
about the recent attack in Orlando
is that the perpetrator was the
son of Muslim immigrants from
Afghanistan and acted in the name

of anti-American sentiment (though
committing mass murder with
automatic weapons is, alas, all too
American).
Warnings that Brexit would
lower income levels were either
dismissed outright, wrongly, as mere
fearmongering, or weighed against
the Leavers greater interest in border
control. A major factor, however, was
implicit class warfare. Working-class
Leave voters reasoned that most
or all of the income losses would in
any event be borne by the rich, and
especially the despised bankers of the
City of London.
Americans disdain Wall Street
and its greedy and often criminal
behavior at least as much as the
British working class disdains the
City of London. This, too, suggests a
campaign advantage for Trump over
his opponent in November, Hillary
Clinton, whose candidacy is heavily
financed by Wall Street. Clinton
should take note and distance
herself from Wall Street.
In the UK, these two powerful political
currents rejection of immigration
and class warfare were joined by
the widespread sentiment that EU
institutions are dysfunctional. They

surely are. One need only cite the
last six years of mismanagement
of the Greek crisis by self-serving,
shortsighted European politicians.
The continuing eurozone turmoil
was, understandably, enough to put
off millions of UK voters.
The short-run consequences of
Brexit are already clear: the pound
has plummeted to a 31-year low. In
the near term, the City of London
will face major uncertainties, job
losses, and a collapse of bonuses.
Property values in London will cool.
The possible longer-run knockon effects in Europe including
likely Scottish independence;
possible Catalonian independence;
a breakdown of free movement of
people in the EU; a surge in antiimmigrant politics (including the
possible election of Trump and
Frances Marine Le Pen) are
enormous. Other countries might
hold referendums of their own, and
some may choose to leave.
In Europe, the call to punish Britain
pour encourager les autres
to warn those contemplating the
P ag e 25
P ag e 26
P ag e 27
P ag e 28
QUOTES
"Bringing Issayas down will not be the ultimate

end, but the beginning of unknown ends."
Zerihun Teshome, a political commentator and author of Kurkora - an Amharic book which
partly deals with the Eritrean issue, said this in an interview with the weekly Amharic
Sendek. Following recent border clashes between Ethiopia and Eritrea, the debate to
remove the Eritrean regime, by any means possible, has resurfaced.
Delicate
Number
The city bus service is frequent and cheap: 15 cents single, 25 cents
return, to any stop on the route. But buses are crowded and it is easy
to get lost unless the visitor speaks Amharic.
Source: The Handbook for Ethiopia, Copyright 1969, University press for Africa.
620,000,000
...total earnings, in dollars, made
from the export of coffee in ten
months of the current fiscal
year, met 81pc of the target,
according to the report by the
Ministry of Trade.
wwayaybback
ackw
when
hen. .. .. .
Addis Abeba between 1958 & 1960.

Source: Historical photos from the Horn of Africa Facebook page.
INVESTMENT
Ministry Acknowledges Diaspora Investment in Tourism, Culture
The Ministry of Culture & Tourism last Tuesday recognised 200 Ethiopians
from the Diaspora who have invested in tourism and culture, acknowledging
the huge role these sectors play in promoting the country's image and
speeding up economic growth. The Ministry is working to maximise the
tourism potential of the country and Diaspora investment in promoting
culture and tourism destinations of their country in hotel, lounge, resort,
travel and tour operations, would encourage further investment, Minister
of Tourism & Culture, Ayesha Mohammad (Eng.) said. So far, over 3,000
Ethiopians living in the Diaspora have created considerable jobs, generating
foreign currency and attracting investment through their promotion. The
Ministry is working to address challenges facing investors in the sector,
she added.
Publication: The Ethiopian Herald, June 30, 2016.
FINANCE
EIB Establishes Office in Ethiopia
Ethiopia and the European Investment Bank (EIB) last week signed an
agreement for the establishment of the Banks country office in Addis
Abeba. On behalf of the government of Ethiopia, Ambassador Teshome Toga
signed the agreement in Luxembourg with the Vice-President of EIB for
African, Caribbean and Pacific States, Pim van Ballekom. The signing of the
agreement is an important milestone in the longstanding relations between
Ethiopia and the EIB with regards to providing finance to key infrastructure
projects. The new office of the Bank will avail a closer and greater access to
finance for both public and private institutions in Ethiopia, and will represent
a substantial contribution to the development aspirations of the country.
Publication: Walta Information Center, June 28, 2016.
Agency Revokes Licenses of 108 Charities, Societies
The Ethiopian Charities & Civil Societies Agency annulled licences of 108
charities and societies, including 14 foreign ones, and issued written
warnings to another 167. Presenting its nine-month performance report,
the Agencys Communication Deputy Director, Assefa Tesfaye, said the
organisations had operated beyond their objectives, opened bank accounts
without permission, failed to submit annual reports or to declare their
By Emmanuel Nnadozie
Where Africa
Needs to Focus
Africa rightly has big ambitions for the future. Our continent
is rich in both natural and human resources. We have a
talented and energetic young population which, with the
right support, can be a powerful motor for prosperity and
progress.
But this progress depends on Africa's having the capacity
to turn these resources into the outcomes we want. And
here we face a serious challenge. Compared to other more
developed regions, Africa lacks the expertise - at both an
individual and institutional level - to develop and deliver
effective programmes to overcome problems and accelerate
progress.
At a technical level, through a study conducted by the African
Capacity Building Foundation (ACBF) for the African Union,
for example, we identified a shortage of 4.3 million engineers
and 1.6 million agricultural scientists and researchers
needed for successful sustainable development. We can see
similar and equally worrying skills gaps at a policy level at
continental, regional and national institutions.
Putting this right must be a priority if Africa is to be in control
of its own successful development. Capacity constraints are a
major brake on our continent's maximising its potential and
overcoming the serious problems we face such as climate
change, high youth unemployment and gender inequality.
It is a challenge that the ACBF is determined to help meet by
expanding its role in providing the expertise our continent
needs. For the last 25 years, the ABCF has been the leader
in building capacity.
Over 50,000 experts in economics, financial management
and public administration have been trained on policy
formulation and decision-making. They have returned to
their jobs better equipped to contribute to the development
of their countries.
We are now determined to draw on this experience and our
unique in-depth knowledge of the strengths and weakness
across the continent in a new chapter for the ACBF. Under
a new five-year strategy, we intend to put a new focus on
meeting the shortfall in critical technical skills, strengthening
expertise in key institutions and developing leadership
capacity.
This will require us to look wider than building up capacity
at the national level, important as that will remain. We will
also put a new priority on working with pan-African and
regional institutions and also with the private sector and
civil society as well as share knowledge and expertise as
widely as possible. We need to build capacity right across
the continent from the community level up.
We have identified, through our strategy, five ways we believe
we can best meet the continents needs for policy-making
and technical expertise.
As we have done for many years, we will continue to provide
grants to fund capacity development programmes and
projects at all levels across the continent. We will use our
long experience, when asked, to identify capacity challenges
and to develop specific strategies to address them.
We will put new emphasis on bringing together expertise on
capacity development from across the sector and providing
a one-stop shop where support and knowledge products
can be accessed. We will work hard with all our partners
to help them mobilise the additional resources they need
to implement capacity development programmes. Finally,
we will work to design new innovative models to ensure
the creation, retention and utilisation of existing capacity.
It is a big agenda which will take the ACBF into new areas
of work. But it also enables us to make maximum use of
the insights and partnerships we have built up over 25
years of working successfully across our continent. It is a
programme which will go a long way to achieving our aim
of an Africa capable of identifying its own development and
of turning our continents potential into better lives and
greater opportunities for all its people.
sources of finance. The Agency diverted to itself, over 19 million Br from

banned and closed organisations. Some were inactive for three years, others
voluntarily returned licences, Assefa said. It also took measures against 275
organisations that broke the rules. The Manager of Hope for the Youth Charity
was sentenced to nine months imprisonment and fined 5,000 Br for raising
public funds without the Agencys permission.
AGRICULTURE
Tractors worth 17m Br for Benshangul Youth
Benishangul Gumuz Regional State Technical Vocational & Micro and Small
Scale Enterprises Bureau has distributed tractors worth 17 million Br to
unemployed youth. These tractors are for agriculture by rural youth who have
completed Grade 10, technical, vocational or university training, according
to Gebremicheal Gudere, deputy head of the Bureau. He noted that the State
had distributed 13 tractors to 500 unemployed youth organised in thirteen
unions. Benishangul plans to buy 27 more tractors this month and to share
plots of land for youth agricultural production and increase job opportunities,
Gebremicheal added. Some unemployed youth in 20 rural weredas are
also going be registered for further support. The Bureau has created job
opportunities for 37,968 youth organised in 1,436 unions.
INDUSTRY
Seminar Highlights Optimisation in Textile Processing
The Ethiopian Textile Industry Development Institute said lack of input supply,
skilled manpower and quality manufacturing processes limit the sectors
revenue generation potential. Opening a two-day technical seminar on Process
Optimisation in Textile Wet Processing the Institutes Director General, Sileshi
Lemma, said annual revenue earned from the sector is over 120 million dollars.
Government is striving to make the textile sector significant in the national
economy. Co-organised by the Institute and Indian Chemical Technology, the
seminar emphasised the role of process optimisation in cost competitiveness
and customer satisfaction considering the present reality of the Ethiopian textile
and apparel industry. Ethiopia aspires to be the hub of light manufacturing
industry by 2025 and is creating a conducive environment for investors.
Emmanuel

Nnadozie (Prof.) is the Executive Secretary of
Publication: The Ethiopian Herald, June 25, 2016. the African Capacity Building Foundation (ACBF).
C O M M E N TA R Y
P ag e 29
As Ethiopia begins to exploit linkages between historic relationships with art and culture and the current climate of opportunities in tourism,
Desta Meghoo J.D., cultural consultant, manager and curator, questions what the future holds for Africans who want to play an active role in the
commodification of culture, to Africas benefit?
Adding Value to Future of Art in Africa
he First Global Map of

Cultural & Creative Industries
(CCI) published by Ernst &
Young in December 2015
states that CCI revenues surpassed
telecoms services worldwide, placing
CCI estimated revenues at 2,250
billion dollars and providing 28.5
million jobs. The top earner was
television, second was visual art and
third newspapers/magazines. Visual
art earnings were a whopping 391
billion and positioned as the number
one employer of over 6.70 million
people worldwide. These numbers
do not properly reflect the informal
CCI economy, estimated at another 33
billion dollars delivering 1.2 million
jobs. Finally, visual arts alone, in
Africa and the Middle East, generated
over 13.1 billion dollars and over
350,000 jobs in 2013.
Yet, as the report states, The notion
of culture is often disconnected from
the economic dimension
So what do all these numbers mean
for Africa as we try to understand the
historic relationship with art and the
current climate and opportunities
for CCI? Also, what does the future
hold for Africans who want to play an
active role in the commodification
of culture, to Africas benefit?
Visual (fine) art, a significant
component of the 14th to 17th
...requests for services such

as insurance, security and
transportation yielded a simple
aychalum, translated, 'its not
possible'. The show was almost
cancelled.
Century European Renaissance,

was reserved primarily for the elite;
juxtaposed to the African relationship
with visual art. Continental creativity,
a language of sorts, had profound
meaning to creators and society alike,
with symbolic, substantial relevance
and myriad uses. Intrinsic value
was placed on amulets, ceremonial
masks, sculptures and so on,
stemming from ancestral, spiritual
and/or social norms. Much like
modern art, the traditional creations
also memorialised time, space and
circumstance, but unlike modern art,
were woven into everyday life.
The relationship with visual art in
Africa began its slow and steady
change in the post-colonial era. But
value or economic systems were
still not developed to ensure the
protection and promotion of art.
Instead, the focus was placed on wellneeded art education. On July 23,
1958, as HIM Haile Selassie I opened
the first By African For African art
institution along with its Founder,
the artist Alle Felege Selam, after

whom the institution was named, it
was clear that the Emperor highly
appreciated the significance of art.
If Ethiopian paintings and other
works of art attain such a high
standard that they can hold their
own amidst exhibits from other
countries, they can certainly help
in the efforts to make Ethiopia
known more widely as a nation
fully participating in the spirit and
substance of modern civilization.
Eight years later in April 1966,
President Leopold Sedar Senghor,
hosted the Pan-African driven "World
Festival of Black Arts" in Senegal
promoting worldwide black culture.
Its role and global impact were not
lost on the poet President.
The civilization of the 20th Century
cannot be universal except by being
a dynamic synthesis of all the cultural
values of all civilizations. It will be
monstrous unless seasoned with
the salt of Negritude for it will be
the saviour of humanity, he stated
unapologetically
Though Ethiopia and Senegal amongst
other African nations were paying
attention, visual art was contextualised
socially and again, value chains were
not put in place to ensure participation
in the emerging economy of art.
Was this oversight influenced by our
historic relationship with art or was it

our natural desire to develop based
on the mainstay of industry and
agriculture? Maybe both. However,
the delay in creating a system for CCI,
in general, has put us on the outside
of a well-established art industry that
decides what and who is worth how
much. It also eliminates income for
providers in the areas of insurance,
security, transportation and other
services.
In 2013, I co-curated the Embassy
of Portugals multi-million dollar
collection, Bridges, at the National
Museum. Thirteenth Century Ming
Dynasty earthenware, lithographs
by Oscar Niemeyer and Paula Rego
(number 14 of the top selling
living female artists) and pieces
by prominent Ethiopian artists
such as Daniel Taye and Merid
Tafesse. The exhibit received over
5,000 visitors within nine days.
Before the exhibition, requests
for services such as insurance,
security and transportation yielded
a simple aychalum, translated, 'its
not possible'. The show was almost
cancelled. Had we not been creative
in addressing these issues, Ethiopias
opportunity to host an international
show of such calibre would have
VIEWPOINT
By Asseged G. Medhin
Break from Tradition in Insurance Industry
n the face of challenging

economic times, pressing
regulatory changes and increased
competition for market share,
insurance companies are struggling
to maintain their balance.
The time does not allow insurance
companies to navigate traditionally
as the storm shifting through will
favour those in the industry who
take advantage of todays market to
position themselves for long-term
future business.
Capitalising on the current challenge
and turning it into a real opportunity
will require new strategies that
leverage human capital and increase
productivity.
Manual processes, customer
retention, underwriting effectiveness,
customer service response and claim
cycle times are all areas in which
change is required to approach
businesses in a more dynamic fashion.
In particular, we should keep in
mind that the Ethiopian insurance
sector has always been a highly
regulated industry. New legislation
and regulations are proposed and
adopted on a regular basis and in
some cases when there is some
emerging risk or malpractice in the
sector. Directives may be a proactive
move and show the responsiveness of
the regulator towards risks.
The insurance sector in Ethiopia has

not operated proactively with regard
to mitigating risks arising out of the
impacts of directives.
Traditional insurers have aggravated

their operational inefficiency as
well as service delivery since they
have been doing their business in a
reactive way.
Another challenge for changeresistant companies is an increasing
compliance demand from federal,
state and other regulatory bodies
demanding for more vigorous
processes that can evolve and adapt
on a continuous basis, but that
also offer varying levels of control
over how they are executed. In the
Ethiopian insurance sector, a single
directive affects the overall process
in typical insurance companies which
are not ripe for transformation.
Insurance companies that understand
the truly compelling need for this
transformation and that have the
advantage of tools available today to
increase operational efficiency and
improve critical insurance processes,
will be leaders in the industry for years
to come.
Business Process Re-engineering
(BPR) and Business Process

Management (BPM) technologies,
including adaptive case management
solution and business architecture
tools, can help insurance companies
apply new strategies to reduce
operational cost, eliminate a
significant stream of paper work
from their processes, improve the
customer experience and grow their
business.
The insurance sector in Ethiopia has
not operated proactively with regard
to mitigating risks arising out of the
impacts of directives.
Whether the company faces an
economic crisis or not, pressure
in the business environment urges
insurance companies to be more
flexible. For instance, directives of no
premium no cover, minimum required
capital, corporate governance and
federal proclamations like Vehicle
Insurance Against Third Party (VIATP)
were implemented because insurance
companies found them difficult to
plug all directives into their operation
system because they were operating
traditionally.
But we should not wait to react for
directives to come, without having
contributed to their design, proactively
applied strategies to work accordingly
and turned them into opportunities
for business development.
Had there been the culture of

professional debate and discussion
involving all who are relevant, much
cost and effort would have been saved.
Insurance Companies must always
find a way to break traditions which
perpetuate a limited view of the
customer and books of business.
They should map out their risks and
mitigate them proactively before they
materialise.
What is the way out for this infant and
acrimonious traditional business?
Can we name any bank or insurance
company that is international in any
shape or form? If not, why do we
use the name international when
we name or brand our intuitions? Is
it because we think globally and do
things locally? Alas, this thinking is
also traditional.
New models of business and
enterprise architecture need to
arise; where integrating with new
technology solutions and affecting
process improvements that leverage
the capabilities of existing personnel
and applications can become the
norm.
Mere automation is not change, it is
the know-how and knowledge-based
service which should be underscored.
As insurance companies must identify
P ag e 30
P ag e 31
P ag e 32
Op-ed Notes
Too Much State Unhelpful to Rapid Industrialisation

Consuming a projected cost of 246 million dollars,
or part of it to date, and planned to be inaugurated
just about a year since construction started, Hawassa
Industrial Park (HIP) was meant to herald today,
July 3, 2016, a shift in the countrys march to
industrialisation to the fast-lane. The inauguration
was cancelled last minute, but the country keeps
ahead towards raising the share of the industrial
sector in the GDP to 27.3pc by 2025, from 14pc
at the end of the first edition of GTP I, in 2014. A
flagship project of the Industrial Parks Development
Corporation (IPDC), Hawassa's is just one of many
similar public-financed projects estimated at 30
billion Br.
In the next 10 years, 20 million square metres of
factory floor space, in locations across the country,
will be serviced with industrial-scale infrastructure.
The parks will be developed on 100,000ha of land.
Under the IPDC, the Addis Industrial Village and
the Bole Lemi Export Processing Zone are already
operational. The Corporation is currently developing
the Qilinto Industrial Park and plans to develop such
parks in Dire Dawa, Meqelle, Kombolcha, Adama,
Bahir Dar and Jimma. Just to speed things up, the
Ethiopian Electric Power has recently entered two
contracts for the supply of separately dedicated substations for Dire Dawa and Kombolcha.
While IPDC, under the watchful eyes of Arkebe
Okubay (PhD), chairman of the Board, is in full
swing implementing its plans, a similar initiative,
which has been warming up shelves as a proposal,
seems to be gaining traction of late. Spearheaded
by the Ministry of Industry (MoI), after two years
of silence from the first round of engagement, 13
specialised agro-processing industrial parks are in
the loop and are estimated to cost 1.5 billion dollars.
Four of these mega parks are planned for completion
in the next five years in the Amhara, Oromia, Tigray
and the Southern Nations regional states, at a cost of
900 million dollars. The Ministry has plans for an
international investment forum aimed at mobilising
additional private investments in light manufacturing,
for later this year.
Another player in the contextual mix is Metals
& Engineering Corporation (MetEC), a militaryindustrial complex but publicly-owned in its legal
standing; it is composed of more than a dozen
semi-autonomous manufacturing companies and
actively operates in several sectors. MetEC also has
its plans for the industrialisation of the country,
eyeing the establishment, in the Bishoftu area, of
an industrial park designated for IT firms. MetEC,
though established to produce machinery for
other manufacturers and serve as a tugboat to pull
Ethiopias industrialisation to shore, seems caught up
in producing consumer goods. Ironically, all the three
state-owned entities are adamant that they have the
magic bullet, portraying themselves as the vanguard
of Ethiopia's transformation from an agriculturereliant economy into industrialisation fit for the 21st
Century. Already spending billions of Birr separately
and planning to continue doing so in the future, all
three bodies propose to bring about the structural
transformation of the economy, where manufacturing
industries will have a more pronounced contribution
to the national GDP.
Though this sector has enjoyed a 13pc average
growth over the first four years of GTP I, its base has
remained narrow; it only managed to contribute
less than five per cent to the overall GDP at the end
of 2014/15.
Despite the tremendous amount of capital being
mobilised by these three, and with no consideration
of the apparently shared goal and priorities, there is
a huge disconnect and lack of coordination among
them. There appears to be a complete breakdown
of communications, often bordering to competition
between them. Sisay Gemechu, the CEO of the IPDC,
which is mandated to develop and run industrial
parks in the country, went on record to say they have
no link with or knowledge of the Ministry developing
industrial parks.
The ongoing turf war between IPDC and MetEC,
and the ideological polarisation IPDC has with
the Ministry is not the only strain hindering the
nation from unleashing its full potential towards
industrialisation. The evident deficit of a policy
focus and coherence by the administration of Prime
Minister Hailemariam Desalegn on what specific
role each party ought to play and which path to take
has left the question who is in charge unanswered.
Clearly, it is casting a dark shadow over Ethiopias
efforts to realise its goals for transformation to an
industry-led economy.
Conceptually, the battle on the path to industrialisation
involves two schools advocating for two different
and competing approaches. Officials such as
Arkebe argue that highly specialised, ultra-modern,
environmentally friendly and safe industrial parks can
only bring rapid industrialisation to the country. Such
parks will be constructed in population centres and
distributed strategically across the nation. They are
The Future of Computing

Ever since the American computer
scientist John McCarthy coined
the term Artificial Intelligence
in 1955, the public has imagined
a future of sentient computers
and robots that think and act like
humans. Such a future may indeed
arrive, although it remains, for
the moment, a distant prospect.
And yet the foreseeable frontier of
computing is no less exciting. We
have entered what we at IBM call
the cognitive era. Breakthroughs
in computing are enhancing
our ability to make sense of
large bodies of data, providing
guidance in some of the worlds
most important decisions, and
potentially revolutionizing entire
industries.
The term cognitive computing
refers to systems that, rather than
being explicitly programmed,
are built to learn from their
experiences. By extracting useful
information from unstructured
data, these systems accelerate
the information age, helping their
users with a broad range of tasks,
from identifying unique market
opportunities to discovering
new treatments for diseases to
crafting creative solutions for cities,
companies, and communities.
The Cognitive Era marks the next
stage in the application of science
to understand nature and advance
human prosperity. Its beginning
dates to early 2011, when the
cognitive computing system Watson
beat two human champions on
the game show Jeopardy!. Since
then, Watson has gone on to do
much more, demonstrating how
cognitive computing can use big
data to tackle some of the most
difficult systemic issues facing
humanity.
Broadly, cognitive systems offer five
core capabilities.
They create deeper human
engagement, using data about an
individual to create more fully
human interactions. They scale
and elevate expertise, learning
from experts in various fields and
My
By Bruno Michel
making that know-how available to broad

populations. They provide products,
such as those connected to the Internet
of Things, with the ability to sense the
world around them and to learn about
their users.
They also allow their operators to make
sense of large amounts of data, helping
manage workflows, providing context, and
allowing for continuous learning, better
forecasting, and improved operational
effectiveness. And, finally perhaps most
important they allow their users to
perceive patterns and opportunities that
would be impossible to discover through
traditional means.
Cognitive systems are inspired by the
human brain, an organ that still has much
to teach us. With systems growing in size
and complexity, traditional computer
architecture seems to be reaching its
limits, as power consumption soars
and the transmission delay between
components becomes increasingly
burdensome. Indeed, when it comes to
energy efficiency measured in terms of
the number of computations per energy
unit on unstructured data the human
brain performs roughly 10,000 times
better than the best man-made machines.
Today, computers consume about 10pc of
the worlds electricity output, according
to Mark Mills, CEO of the Digital Power
Group. In order to benefit fully from the
Cognitive Era, we will have to be able to
harness huge amounts of information;
during the next 15 years, the amount of
digitally accessible data is expected
to grow by a factor of more than 1,000.
Performing the calculations necessary
for using such a large amount of data will
not be possible without huge strides in
improving energy efficiency.
Matching the performance and efficiency
of the human brain will likely require us to
mimic some of its structures. Rather than
attempting to squeeze energy-intensive
performance out of ever-larger

chips, we can arrange computer
components in a dense 3D
matrix similar to a human brain,
maximizing not performance, but
energy efficiency.
Arranging computer chips in a
3D environment puts the various
elements of the computer closer
to one another. This not only
reduces the time they take to
communicate; it improves energy
efficiency by a factor of as much
as 5,000 potentially providing
computers with efficiency close to
that of a biological brain. Already,
a much denser computer built
from available mobile technology
and hot water cooling allows for
10 times higher efficiency than a
conventional system.
But man-made computers are
so inefficient not only because
they need to power the chips, but
also because they need energy
to run the air conditioners that
remove the heat generated by the
processors. The human brain has
a lesson to teach here as well. Just
as the brain uses sugar and blood
to provide energy and cooling to
its various regions, a 3D computer
could use coolant fluid to deliver
energy to the chips.
In addition to dissipating heat, the
fluid could be used to power an
electrochemical system providing
power to the processors. This,
in turn, would allow for further
increases in packaging density and thus efficiency.
By adopting some of the
characteristics of the human brain,
computers have the potential
to become far more compact,
efficient, and powerful. And this,
in turn, will allow us to take full
advantage of cognitive computing
providing our real brains with
new sources of support, stimulus,
and inspiration.
Bruno Michel is a a scientist
at IBM Research in Zurich. This
article is provided to Fortune by
Project Syndicate.
designed to ease accessing services for manufacturers

with a one-window service through collaboration
with the Ethiopian Investment Commission (EIC) and
Ethiopian Revenues & Customs Authority (ERCA).
This approach also calls for the nurturing of exportoriented manufacturing industries and proposes
generous government incentives, especially for local
investors, to take an active role in utilising the parks.
Not only do they attract capital from overseas, they
enable the transfer of technology and create massive
jobs in the shortest time possible. Proceeds from
exports can be gained within few months of starting
operations, helping the country foot its bills.
They are not without a challenge. Their critics, mainly
in the Ministry of Industry under Ahmed Abitew, point
out that given the sheer size of Ethiopias rapidly
increasing population, it will not suffice to meet the
challenges of unemployment. Its vulnerability to
heavy reliance on foreign capital is another point of
contention, on the ground that no country is wise to
leave its fate to trans-national companies which are
only interested in the "race to the bottom".
Ahmed and his experts call for an approach that has
the capacity to cover wide portions of the country with
small- and medium-sized industries mushrooming
all over. They rather would like to see rural satellite
industries developed in the form of medium and
small enterprises, creating job opportunities and
also linking local farmers who can, not only sell their
produce, but also consume manufactured goods.
They hope to see the formation of the national capital
in the hands of the indigenous private sector.
As the ideological debate continues and the lack of
consensus among EPRDFites lingers, the practical
implementation of the different plans for various
aspects of industrialisation is well underway. The
blurred policy approach is causing disharmony in
the governments ability to effect change. In addition,
prospective industrialists are left confused not
knowing which route the government will adopt in
the end, undermining their confidence.
Most importantly though, there is fierce competition
among these groups for resource allocations. The
economy does not have the luxury of handing out
cash at will. A resource-constrained economy wored
better be in the hands of policymakers who know
how to prioritise and where to place resources for
optimum results. A poor country like Ethiopia cannot
afford experiments carried out by competing interests
to see what works best in the end.
Frankly, the Revolutionary Democrats appear to be
wasting time and resources where they should not.
It should not be the business of the State to drive
the formation of industries where it prefers. Many
countries have travelled that road and for years have
little to show for their massive investments. They
would rather focus elsewhere with the potential to
effect change better and faster.
Driving industrialisation is all about reallocation of
labour and resources from less productive sectors of
an economy to where there can be more productivity
both in volume and value. A state can achieve these
objectives where it is relevant and rightly prepared
with potent policy tools. Rather than claiming the
roles of enabler and operator all in its own, it could
choose and focus its priorities. It can invest whatever
little it has under its disposal on skills development,
while at the same time it should enhance access to
finance to citizens on the basis of equal opportunity.
Addressing critical constraints in land provision and
public infrastructure, particularly of power, goes a
great length to help firms compete. It is worthwhile to
bear in mind that in the globally competitive markets,
it is not nations which compete, but the firms created
as a result of a conducive business environment
under light regulatory burden.
As it is, regardless of what Hailemariam's
administration does in setting up industrial parks or
promoting satellite agro-processing units in rural
Ethiopia, no industrialisation can take off while the
regulatory burden is painful, the logistical corridor
is costly and the Customs procedure is cumbersome.
A manufacturer operating inside the Modjo Eastern
Industrial Parks is robbed of its competitiveness
when it imports containers from China which cost
four times more from Djibouti to its factory than from
China to Djibouti. A sensible thing would be to have
a meaningful start in simplifying the procedures and
opening up the corridor for competition.
No less important is to improve the tax administration
system in a way that it simplifies codes both to the
taxman and the taxpayer. The tax agency has to create
an environment of transparency and a mechanism for
recourse by taxpayers to bring to account those who
misuse and abuse their office there. Most importantly,
though, the State should limit its role to creating an
enabling environment where the private sector thrives
in the industrial sector, on its own merit and far from
a policy-induced approach. Issues of legislation,
provision of basic infrastructure and incentives
should be the State's preoccupation in bringing
structural transformation to the countrys economy.
P ag e 33
Commercial Bank of Ethiopia
Tender Notice
The Commercial Bank of Ethiopia, in accordance with the authority it was given by proclamation No. 97/98 would like to sell the following office and factory building
along with textile machinery in its present condition in an open bid.
Borrowers Owner
Name
of the
property
Selendawa Borrower
Textile S.C.
Lender
branch
Dire Dawa
Description of
the property
Location of
the
property
Factory buildings (Factory 1&2, rear

side office # 1 & 2 G+1, office # 3 G+2,
dormitory G+2, cafeteria and toilet
G+1,car shade and cattle house, clinic,
lounge,cattle keepers house, scale
and personnel blokes,cattle house and
guard house) and various pleces of
Textile machinery
LHC
Area of the
land
Dire Dawa
//2618 180,000m2
town,Boren
(18
Jeden Kebele
hectares)
Note
1. Any bidder or legal representative can participate in the bid by depositing 1/4th
of the starting price in a form of CPO.
2. The Bid will be opened at Dira Dawa Town,Boren Jeden Kebele,House no. New
at Selendawa Textile Factory.
3. A manager or deputy manager who wants to represent a private limited
company or share company in the bidding has to present power of attorney, the
Memorandum and Articles of Association. In case of change of the Manager or
deputy Manager, a Minute that states the change and endorsed by the Office of
Documents Registration and Authentication have to be produced together with
Memorandum and Article of Association.
4. The machineriy was imported free of Customs duty. Any bidder who is entitled
to duty free privileges or be able to present document from the concerned
government authority evidencing a duty free privilege after the auction, will
be exempted from paying Customs duty. However if the bidder does not have
duty free privilege or fails to bring document from the concerned government
authority describing duty free privilege, Customs duty charges shall be paid on
the machineriy in addition to the auction winning price.
Starting Price
(in Birr)
Bid Opening
Date
Remark
Time
452,754,567.23 August 9:0008, 2016 11:00 pm
The
machinery
was
imported
free of
Customs
duty
5. All office equipments, raw materials, finished goods, vehicles, mixer and various
iron sheets that are found in the compound of Selendawa Textile factory are not
included in this bid.
6. Those interested in visiting the property can do so together with the Banks
staff offered at Dire Dawa district from the date of this announcement during
working hours on working days in the compound of Selendawa Textile factory
(Dire Dawa) or enquire in person found in Loan Recovery office number 508, on
the 5th floor, Sajidah Business Center behind Balcha Hospital.
7. The winner should pay the remaining amount of money within fifteen days
from the date of award. If the winner fails to settle the stated sum, the Bank will
seize the deposited money.
8. Bidder that wins the tender and wants partial loan may obtain partial loan upon
fulfilling the requirements of the Bank.
9. The Bank reserves the right to reject all or parts of the bid and to annul the
bidding process.
For further information or clarification call Telephone numbers 0118-96-21-17 or
0118-96-21-25, or enquire in person Loan Recovery Office,number 508 on the
5th floor,Sajidah Business Center behind Balcha Hospital.
External Vacancy
Equatorial Volvo Business invites external applicants for the following positions:1
Position
Head, Local Purchase
Qualification
BA Degree in Business Management/Marketing/Economics or Related Field
Experience
8 years in Purchasing.
Duties
Under close direction compiles data on goods to be purchased from local markets; prepares bid tabulation and analysis;
places purchase orders on time; handles correspondence with local suppliers; ensures the proper handling of goods to stores
and settlement of purchase advances; supervises all purchase processes up to delivery.
Skills
Comprehensive knowledge of procurement principles and practices

Comprehensive knowledge of company purchasing policies and procedures
2nd Grade Driver's Licence
Position
Local Purchaser II
Qualification
College (10+3) Diploma in Purchasing and Supplies Management /Marketing or related field
Experience
4 years of relevant experience
Duties
Under general supervision, undertakes local purchases of goods and services in accordance with set specifications, at minimum
cost and consistent with quality standards and delivery requirements; ensures the proper maintenance of documents; follows
up all purchase processes up to delivery; assists supervisor in handling and managing local purchase.
Skills
Comprehensive knowledge of procurement principles and practices

Comprehensive knowledge of company purchasing policies and procedures
2nd Grade Driver's Licence
3. Position
Junior Parts Engineer
Qualification
BSc in Mechanical /Automotive Engineering or related field
Experience
None
Duties
Under general supervision, processes spare parts sales provides technical advice to customers on matters related to the
interchangeability and usage of genuine parts.
Head Count
1 (One) for each positions
Salary
Negotiable
Place of Work
Addis Ababa
Interested Applicants can submit in person Non-returnable applications with Current CV and Testimonials within 10
consecutive days after the date of this vacancy announcement to Equatorial Volvo Human Resource, Brown Building 1st floor.
Equatorial Business Group Head Office,
Volvo Human Resource
Saris Road (Near Addis Tyre Sh. Co.) Brown Building P.O. Box 8964, Addis Ababa Tel 011-470-74-73/011442-49-55.
P ag e 34
P ag e 35
P ag e 36
INVITATION FOR BIDS

Procurement Number: 01/AU-PANVAC/16
CCS Comservice Solutions PLC
THE PAN AFRICAN VETERINARY VACCINE CENTRE

OF THE AFRICAN UNION - DEBRE ZEIT, ETHIOPIA
SUPPLY OF STAFF SERVICE BUS
VACANCY ANNOUNCEMENT
The Pan African Veterinary Vaccine Centre of the African Union has secured funds
for the procurement of the above mentioned goods and ancillary services, and now
invites sealed bids from eligible bidders for the Supply of Staff Service Bus whose
specifications are detailed in the bid document uploaded in the AU website.
Interested bidders can download the bidding document, the AU website: http://
www.au.int/en/bids. The deadline for submission of bids is 18th July 2016 at
2:30pm. Sealed bids will be opened on 18th July 2016 at 2:30pm in the presence
of bidders or bidders representatives who choose to attend, at the address
below.
Both technical and financial offers should be in the same envelope. Late bids will
be rejected and returned unopened to bidders.
Interested bidders may obtain further information at the address below between
7:30 to 16:00 local time:
AU/PANVAC
P. O. Box 1746, Debre Zeit, Ethiopia
Tel. +251 11 433 8001 or +251 11 437 1347
Fax +251 11 433 8844
Email: NickN@africa-union.org
BodjoC@africa-union.org or AbrehamM@africa-union.org
Bids must be delivered to the address below on or before 2:30 pm on Monday
18th July 2016.
The Director
AU-PANVAC
P.O. Box 1746
Tel. +251 11 433 8001/+251 11 437 1347
Fax +251 11 433 8844 Debre Zeit, Ethiopia
Looking for a good and active person to fill this place as an accountant. Its a great opportunity for those who want to become a professional accountant.
Apply before its toolate!
Job title: Accountant
Education: B.A. Degree or MAdegree in Accounting
Experience:1 year of relevant experience is an advantage
Requirement: -Only men can apply
-Communication and interpersonal skills
-Ability to coordinate subordinates
-Basic Computer application skills
Salary:
Negotiable
Interested applicants who meet the requirements shall send
application letter, CV and non-returnable copy of other supporting
documents within 7 days from the first date of announcement to
the following address.
Address: Bole Road

Friendship City Center, 5th floor Room no. 504
Contact number: +251-913-326820
Email: tihutg@yahoo.com
CALL FOR TENDER
Open Tender Number DB/OT/01/2016
Dashen Bank invites all interested bidders for the supply of the under listed items;
S/N
ITEM
Unit of Measure
PROPOSED QTY
Pcs
Pcs
Pcs
Pcs
3,000
Gift items
Key chain
Executive pen
Normal Pen
Standard pen
1,000
2,000
15,000
Best wish cards and envelope for
Ethiopian New Year

European New Year
Desk Planner
Wall Calendar
Diary
T-Shirt
Umbrella (Big size)
Mug with Logo
pcs
Pcs
Pcs
Pcs
Pcs
Pcs
Pcs
Pcs
1. Interested and eligible bidders are invited to purchase the bid document starting
from July 4, 2016 from Promotion Division, adjacent to Nifas Silk Painting
4th floor, having paid non refundable fee of Birr 100 at any of Dashen Bank
Branches; account number 180020002 & present copy of credit advice ticket
during the office hours (Monday to Friday 8:00-12:00 AM, 1:00-5:00 PM and
Saturday 8:00-12:00 AM).
2. Copy of trade license, VAT registration certificate and TIN certificate which are
renewed for 2008/2009 E.C are required while submitting the bid document.
3. 2% of the offer shall be presented as a bid bond through unconditional bank
guarantee or cash npayment order.
50,000
30,000
6,000
20,000
5,000
3,000
50
1,000
4. Bidders shall clearly specify the type of giveaway in their offer.
5. The sealed bid document shall be placed in the box prepared for this purpose up
to July 18, 2016, 10 AM at the place mentioned under no.1 above and the bid
shall be opened at 11:00 at the presence of the Bidders or their respective legal
agents.
6. The Bank will not accept the late delivery of the stated items.
7. All suppliers should present samples of all the above items.
8. Failure to comply any of the conditions stated above from no. 2 to 7 shall result
in automatic rejection.
9. The Bank reserves the right to accept or reject the bid either partially or fully.
NB: For any information you can contact with Tel 0114661645 / 0114653778
P ag e 37
Arada
The fallout from Britain's decision
to exit the 28-member EU block has
had significant impacts on diplomatic,
financial and economic aspects. The
reverberations have been felt, in some
shape or form, in different parts of
the globe. As the drive to reverse the
referendum is already in full swing and
gaining momentum, the outcome is
inspiring separationist issues elsewhere.
he unexpected, perhaps
shocking decision by
referendum of the British
people to leave the European
Union raises more pertinent questions
than ever before. And this is not
without reason. The United Kingdom
(UK) government after 43 years of
membership of the Union must have
convincing reasons to give the people
of the country the opportunity to make
this crucial decision.
Before we try to discuss the impacts
of the decision, it is to be noticed
that the percentage difference makes
the outcome of the referendum not
only a landslide but there were also
millions who chose to abstain. The
latest information heard at the time
of writing was that based on British
law, another referendum can be held
and the petition signed by over 3.7
million people speaks volumes as the
required number is 100,000. This
means that those who may be regretting
their previous abstentions could have
another chance.
A survey conducted by the BBC shows
that the majority of people who opted
to leave the Union are older people
comprising factory workers, fishermen
and the relatively less educated. The
younger generations future destiny
was decided by people who have seen
the best days of their own lives. These
people, leaning to the far right, want
Great Britain to regain greatness as
in the colonial days of the Empire on
which the sun never sets.
Can these remnants of those parents of
the past turn back the clock of history?
This is a relevant question to pose.

The decision has baffled almost all
the citizens of Britain living in various
towns and cities all over the world
including the United States.
What has already transpired in Scotland
and Northern Ireland, where most of
the people have chosen to stay within
Europe, is the debate of having a
referendum within their respective
territories on whether to stay within the
UK itself or have their own independent
sovereign nations. Should they opt for
independence, some analysts predict
that they could individually apply for
membership to the EU. That request,
if approved per the criteria set by
the Union, they could be accepted if
the reconsideration of the decision
made last week were to be accepted
by the EU.
By Girma Feyissa
Impacts
of UKs
Decision
On the economic front the financial

giants like the IMF, IBRD, World
Bank and other bodies that can make
decisive indents in the economic
situations of many countries are
dismayed by the decision and. The
future of the UK pound, which had
... we can safely say

that uncertainty
is perhaps the
household word in
todays politics.
P ag e 37
plunged, but which seems to be settling

was one of the negative impacts. Falling
market figures that showed a decline
by a significant eight per cent.
The Brexit move may also adversely
affect some countries like Ethiopia
which depends very much on both
UK and EU aid and assistance in the
process their respective development
and security-ensuring projects in their
respective domains.
In light of present pre-election debates
in the US, the Republican presumptive
candidate Donald Trump has not only
readily welcomed the UK decision to
leave the EU, he did not waste time
seizing the opportunity to link the
decision with future implications of
the migration problem that European
countries have now have on their
hands. He proposes to deny the right of
these countries to accept and live with

or resolve the problem and supports,
instead, chasing away Muslims and
other citizens of Africa and the Middle
East. In fact, he argues that Britain
should expel those foreign-born UK
residents of foreign origin.
Consequences of the Brexit can also be
seen from the light of other countries,
like the fragile situation in Spain. The
other case which we know more and
better for its Barcelona football club
is the Catalonia desire to go it alone,
a fragility which the next election is
expected to show.
Although it takes at least two years to
process the divorce of Great Britains
decision, Prime Minister David
Cameron has decided to resign from
office much earlier. In fact, he plans
to leave his office in the next three
months.
From the perspective of what could be
decided in the overwhelming decision to
run and conduct a second referendum,
we do not have enough material to give
any conclusive statement at this point
in time. However, we can safely say that
uncertainty is perhaps the household
word in todays politics.
We can speculate on some of the
trends in the social, economic and
political problems prevalent in some
African countries, including impacts
of tribalism and narrow ethnicism.
Take the case of South Sudan and the
consequential refugee pressures they
place on neighbouring countries like
Kenya and Ethiopia. We shall cross
the bridge when we come to the river.
CITY LIFE
P ag e 38
WWW.GLORIOUS-PLC.COM
P ag e 39
P ag e 40
C O M M E N TA R Y
Achieving functional excellence in management and integration of logistics is crucial to Ethiopias transformation to
industry-led development that is sustainable, argues Yohannes Abebe (yohannesabebe10@yahoo.com), procurement
specialist in this commentary.
Functional Orientation Hinders Logistics Integration
or a landlocked country like

Ethiopia, and a government
engaged in a mega
transformation plan targeted
to achieve a middle-income economy
and the sustainable development goals,
building logistical competency is a
matter of survival in business.
Indeed the road and railway links, the
construction of dry ports and airfields
with warehouses and material handling
facilities shows the governments
desire to create integrated logistics.
Despite these logistics network designs,
goods are congested at sea and dry
ports, and truck drivers seem on holiday
as 40ft containers are loaded with huge
quantities of construction materials
destined for critical projects. Yet failure
to design methods of controlling quality
at the source is also raising the costs of
reverse logistics.
At times stock keepers are surprised
by the unexpected arrival of goods off
work hours. And they, in turn, look
for inspectors and warehouse spaces,
laying the goods on floors. Worst of all,
the physical distribution starts with the
exchange of several memos and after
months of delay. This is not effective
logistics management.
In fact with a vision of building a
manufacturing nation with industrial
parks positioned at various strategic
geographic locations and with a
growing economy, our nations logistics
will become so big and complex.
... working on a campaign basis

to appear to be taking corrective
measures after some fallout, and
returning to the usual after the dust
has settled is boring and uneconomical.
As much as the opportunity exists

to expedite logistical operations the
challenge lies on various limitations
to logistic integration. According
to Bowersox and Closs (1996),
internal integration barriers include organisation structure, measurement
systems, inventory ownership and
knowledge transfer capability.
In the past decade, efforts have been
geared to create process thinking
in production and service delivery.
That has limited impact in changing
function based work which writers
call functional silos leaving crossfunctional work to no mans land. That
is so we are trained to perform specific
tasks with specific responsibilities.
Similarly, budget, measurement
systems and rewards follow that line
of structure.
On individual firm level, for instance,
when there is a procurement request
for a vehicle, the traffic section
then requests petrol and per diem
for drivers. In some places, all
departments and branches have
messengers/storekeepers collect their
goods, which would otherwise be
distributed by a driver with a physical

distribution plan on hand.
The reason is every section is willing to
perform its own with no concern for
total cost minimisation. In this kind
of situation, it will be very difficult
to achieve internal integration let
alone a scenario with trusted external
suppliers.
So far, the practice of inventory
management is another problem for
integration. Items are hoarded to
the extent that finance allows, costbenefit relationships and risks of
obsolescence are no considerations.
Inventory reports have no use except
for auditing purposes. On the other
hand purchasing and stocking parts
that are insured and readily available
in the market are costing organisations
thousands of dollars.
When thinking about integration,
information technology takes central
place in the whole process. Government
should work for higher integration
of the procurement agency, stateowned enterprises that effect strategic
purchases, private enterprises and
factories in industrial parks enabling
them to share information on a realtime basis.
More importantly, without knowledge
the role facilities play might be very
limited. Despite the huge investment
in expanding the opportunity to
education at all levels, and seeking
knowledge and skill transfer from
foreign companies, the ability of firms

to create a level field for passing and
sharing experience is discouraging.
The lack of relative stability in the work
setting is costing more individual firms
and the country as a whole.
Even to achieve functional excellence
one has to gain a thorough
understanding of the numerous
logistics activities before reengineering and standardising work.
All in all individual firms should stop
traditional ways of doing logistics in
which orders are lost in the hands
of secretaries, maintaining excess
inventory without proper forecasting,
sourcing from improperly evaluated
suppliers.
In addition failing to plan ahead for
warehouse spaces, finding inspectors
after the goods are received and then
working on a campaign basis to appear
to be taking corrective measures after
some fallout, and returning to the usual
after the dust has settled is boring and
uneconomical.
Particularly departments should
stop looking at each other with illwill. Blaming other sections will do
nothing to the organisation as a whole
and signals institutional weakness.
Inventory stuck in one place is a loss
in value unless it is positioned at
the right time and place. Change is
needed in the functional mentality and
benefits of seeing the big picture will
be widespread.
Vie w p o int
By John Rao Nyaoro (PhD)
Nile Cooperation Akin to Teamwork in Sports
or any football team, you have

the goalkeeper, defenders,
midfielders, strikers and the
coach. These entities blend
together so as to secure victory for their
team. Separately, they would achieve
nothing, for it is through teamwork
(cooperation) that the eleven players
can face their opponents (challenges)
and win.
The players are organised into two
teams; on the one hand is the Nile
Basin States, namely, Burundi, DR
Congo, Egypt, Eritrea, Ethiopia, Kenya,
Rwanda, South Sudan, Sudan, Tanzania
and Uganda and on the other, all the
drivers including poverty, population
growth, environmental degradation,
climate change and natural variability,
among others. Each team is chasing
a piece of skin (the scarce Nile River
water resources for their livelihood)
to drive into the opponents net and
win the game.
On that basis, a lone Nile Basin player
cannot assume all the positions and
win the game. It takes each player
focusing on his key role in the grand
scheme of things the team and the
game for them to achieve their
common goal.
Ten of these countries have agreed
to work together under a unique
cooperation programme coordinated
...some 22 million people are

expected to become more energy
secure through a more reliable
power supply and lower power
generation costs.
by the Nile Basin Initiative (NBI) to

achieve a common goal improve
the livelihoods of the more than 437
million Nile Basin citizens, in the
wake of shared risks and challenges
affecting their shared resource, the
River Nile. Eritrea participates as an
observer.
Just like in football, where players
avoid errors such as scoring own
goals or being caught offside, the NBI
has created an atmosphere of trust
through which Member States can
work as a team, exchanging ideas and
expressing occasional dissatisfaction
while still respecting each players
importance to the overall sustainability
of the river.
Seventeen years since it was
established, NBI has promoted
cooperation by overcoming a legacy
of distrust and challenges between
countries in terms of politics, water
demands and development status.
Where there was limited capacity
in the water sector at national and
regional levels, NBI has sponsored
hundreds of individuals to undergo

both academic and hands-on training
in water-related courses. Today, water
resources projects are considered
for their basin-wide implications,
and the potential for shared benefits
from more equitable and reasonable
sharing of the resource, is fully
understood.
NBI has successfully created an
enabling environment for sustainable
and equitable development of the
Nile Basin water resources. Transboundary cooperation has advanced
regional integration through identifying
and developing joint investments. By
working to improve food, energy and
water security as well as trade and
incomes, transformational change is
being achieved.
These benefits are clearly visible
in the region, including regional
power interconnection and hyropower
projects between Ethiopia and Kenya,
and Tanzania, Rwanda, Burundi
and Uganda. Additional projects are
proving to be transformative as well
as improving the resilience of some
of the poorest communities in the
basin. Once fully implemented, these
projects promise to benefit nearly 30
million people in the next 10 years.
At least seven million people will
have improved food security from the
watershed and agriculture irrigation
projects, over three million people

will have better access to water
for sanitation and some 22 million
people are expected to become
more energy secure through a more
reliable power supply and lower
power generation costs. One project
recently commissioned is the Ethiopia/
Sudan interconnection hydropower
project this is already benefiting
1.4 million people in both countries.
The upcoming Annual Nile Council
of Ministers (Nile-COM) meeting on
July 14, 2016, in Entebbe, Uganda
will see Water Affairs ministers from
the region deliberate on how to
expedite implementation of already
prepared projects so as to contribute
to improved livelihoods of the people.
The ministers will also discuss how to
achieve basin-wide Nile Cooperation,
given that the latter is not a choice but
a necessity.
On that day, Tanzanias Minister of
Water & Irrigation, Gerson Lwenge
(Eng.), will pass the captains
armband to Ugandas Minister of
Water & Environment, Sam Cheptoris,
as the team continues to play for the
victory.
John

Rao Nyaoro (PhD) is
Executive Director of the Nile Basin
Initiative Secretariat. He can be
reached at jnyaoro@nilebasin.org
P ag e 41
INTERNATIONAL LABOUR OFFICE

COUNTRY OFFICE FOR DJIBOUTI, ETHIOPIA, SUDAN, SOUTH SUDAN AND SOMALIA
INVITATION FOR CONSULTANCY SERVICE

The International Labour Organization, Country Office for Djibouti, Ethiopia, Somalia,
Sudan and South Sudan is looking for qualified Consultants as per the following details
Terms of Reference
Content Development for Migrant Domestic Workers (MDWs) rights and
obligation, FAQ on Irregular Migration, and Social protection of MDW in
GCC states leaflets
Context and Justification
The ILO is implementing a three-year technical cooperation project funded
by the European Commission subtitled: Development of a Tripartite
Framework for the Support and Protection of Ethiopian women Domestic
Migrant Workers to the GCC States, Lebanon and Sudan. The project
aims at strengthening the policy and operational framework in Ethiopia
to ensure safe and regular migration of Domestic workers to the Gulf
Cooperation Countries and improve protection and reintegration of
returnees as an integral part of the socio-economic development agenda
for possible expansion and replication. The project is directed to help
governments, social partners and other stakeholders:
I. Improve operational framework for cooperative action and
exchange of information between sending and receiving countries;
II. Make legal migration more attractive and reduce irregular
migration;
III. Streamline and decentralize the migration process in the country
of origin and strengthen reception in receiving countries; and
IV. Provide migrant domestic workers with relevant information and
substantive training prior to departure and on return home to
ensure their successful performance and reintegration.
V. To track labour migration patterns and trends from Ethiopia.
In this regard, the ILO in collaboration with the Ministry of Labour and
Social Affairs (MoLSA) would like to recruit a consultant to produce various
educational materials useful to give concise explanation on the migration
process for aspiring MDWs and MDWs to Kuwait, Saudi Arabia, UAE, Qatar,
Oman and Bahrain, Lebanon and Sudan. The consultant should gather
up-to-date information on the migration process from the pre-departure
formalities to explaining matters like employers social and cultural customs,
current immigration rules and laws and policies in destination countries.
The consultant should also provide information on rights and obligations
and social protection aspects of MDWs while working in the GCC, Lebanon
and Sudan.
The main objective of commissioning these consultancy to develop a
various promotional materials for the MDWs to better equip them with
the relevant knowledge before departure and upon until arrival back
to Ethiopia. Henceforth, the work should take in to account the specific
country context as well as provide all relevant information to make MDWs
feel safe and secure in the destination country to assists them to work
successfully, enhance their ability to become self-sufficient more quickly
and assist them to reintegrate into the labour market more smoothly once
they are back in Ethiopia.
Functions and responsibilities
1. Collect key relevant information concerning the overall process of
migration of Ethiopian MDWs to Kuwait, Saudi Arabia, UAE, Qatar,
Oman and Bahrain, Lebanon & Sudan, i.e. pre-departure, during
employment and upon return and reintegration and from that
produce the below listed materials;
a. MDWs Rights and Obligations leaflets
b. FAQ on Safe and Fair Migration
c. Social protection of MDW in GCC states, Lebanon and
Sudan
2. Develop the products in a manner that is understandable by the
target audience; The brochures should include information such as
the below listed;
Immigration rules and laws and all relevant information that affect
Ethiopian MDWS of origin country and destination countries;
Ways of regular migration;
Pre-decision making considerations;
Recruitment;
Pre-departure preparation;
Customs related matters;
Arrival in destination country;
At work/In-service;
End of Contract;
Extension of stay;
Return and reintegration;
Repatriation due to various reasons;
MW rights and responsibilities;
How to defend rights;
After arrival steps to follow;
Social practices;
Potential vulnerabilities;
Ways to be safe.
Social Protection aspects
Timeframe
8 -22, July 22, 2016
Deliverables
The consultant will deliver the following:
An Inception Report that will include the proposed methodology
and a detailed work plan;
A first draft of the brochures;
Presentation of the brochures to ILO and MoLSA;
A final brochures incorporating any comments suggested by the
ILO and partners.
Deliverable should be submitted in hard and electronic copy to Ms. Aida
Awel, CTA, aida@ilo.org and Ms. Eden Teklay, NPC, eden@ilo.org
Deliverables Date
Deliverables 1: Inception report on July 11, 2016
Deliverables 2: 1st draft on July 18, 2015
Deliverables 3: Final report on July 22, 2016
Required Education, Experience and Competencies
At least Masters Degree in Social Sciences or Development Studies.
Five or more years of professional experience in a related field.
Proven experience in data analysis and administrative reporting
procedures.
In-depth understanding of the labour and human rights based
approaches and how they apply to migrant workers labor issues.
Proven time management skills, coordination and knowledge of
research ethics.
Good drafting skills, ability to communicate effectively both
pictorial, orally and in writing, ability to clarify information, good
computer application skills, good organizational skills, ability to
deal with people with tact and diplomacy, etc.
Application Guidelines
Interested applicants should submit their letter of application, CV, copy
of credentials, other supporting documents that show previous work
experience, technical and financial proposal to the following address:
The Administrative Assistant (Migration),
Country Office for Ethiopia & Somalia
International Labour Office
PO Box 2788
ECA - Addis Ababa
Deadline for submitting applications: July 5, 2016
P ag e 42
P ag e 43
P ag e 44
Adding Value to Future . . .

been lost.
The possibilities and opportunities
are endless as evidenced by the
Ernst & Young report. Addis
Abeba has a clear advantage as the
diplomatic capital of Africa, seat
of the African Union and the UN
Economic Commission for Africa
boosted by international media,
including a 2014 New York Times
piece noting as Addis Abeba, An
ambitious art scene heads towards
the international stage.
The time is perfect for us to stake
our claim to African creativity for
the benefit of the artists and all
other actors, or face being further
disenfranchised. Take for instance
Sothebys auction house. Is it fair
or even fathomable that the famous
auction house estimated the value of
the iconic 16th Century, 22cm tall
ivory mask, looted from Benin by the
British, at over six million dollars?
And Christies auction house, sold
Ethiopian-American Julie Mehretus
2013 painting for over 4.6 million
dollars; making her the number
seven top selling living female visual
artist in the world! How was the
value determined and could these
pieces have been worth even more?
Ethiopia will welcome Julie Mehretu:
The Addis Show, an exhibition of
17 past and recent works, curated
by Cornell Univericity's Professor
Dagmawi Wubshet sponsored mainly
by the US Embassy. This upcoming
exhibit provides another opportunity
to urge policy makers and private

sector investors alike to assess the
viability of a value chain for art to
include numerous related industries
in addition to insurance, media
and security such as appraisal,
technology, and more.
But in all fairness, the Ethiopian
private and public sectors have been
taking slow steps towards capitalising
on this emerging industry. The
aforementioned business sectors
would be wise to consider diversifying
services to address the growing CCI as
a solid art industry can help protect

artists rights, promote the creativity of
the country and continent within and
across borders while sending a clear
message to Western counterparts that
Africa is at the helm of its creations.
So what does the future hold?
The Ethiopian Minister of Foreign
Affairs, Tedros Adhanom (PhD),
recently visited my birthplace,
Jamaica, known worldwide for its
assertive tourism industry. Trade
and tourism were tabled as areas
of mutual concerns. And as art is
an inherent component of tourism,

Ethiopias substantial inventory
and access to ancient and fine art,
make Ethiopia a prime destination.
Discussions are also being held
between artists/activists and the
African Union Commissions Trade &
Industry Department on positioning
CCI as an integral element to boost
intra-Africa trade. Initiatives would
include push for policy shifts to
harmonise country and continental
value systems, ensuring IP protection
for artists and indigenous rights and
Break from Tradition . . .

their core process with the multiple
support process and avoid multiple
touches both in the core as well
as support process, they need
to simplify complex work flows
and handoffs and implement an
integrated seamless process to have
a competitive advantage.
Automation has to be properly in
place in this process so as to get
the right information from disparate
data sources for optimum decision
making, and fight very-rigged
application environments to ease the
effect of inefficient business process.
Some insurance companies in
Ethiopia introduce automation in the
context of a very rigid management
philosophy, or attitudes cemented in
anti-change stance. There are still
some others who love the status quo
and keep telling their clients about

the merits of the old days.
In an ever changing business
environment, there is a period of
storm and strike and traditionalists
will eventually be pushed out.
With the issues addressed so
far (change plus automation),
companies must be prepared to focus
on retaining profitable customers,
attracting new customers through
myriad distribution channels,
delivering new products, and
providing high quality customer
service.
Insurance company executives who
dare to change their companies - to
streamline processes and deliver
improved performance to support
profitable growth strategies must
work on the four key strategies.
the promotion of contemporary

and traditional art among other
concerns.
In closing, a voice from the African
Union Commission (AUC) is
pertinent and worthy of everyone's
consideration.
Arts and culture are more than our
heritage, they represent a key vehicle
for Africas structural transformation
and economic emancipation, AUC
Director for Trade & Industry,
Treasure Maphanga suggests.
They need to change their core

business process that will enhance
operational efficiency and control
expense across their service value
chain, driving for leverage. Moreover,
they should integrate automation
across silos.
Ch a n g e t h e o v e r a l l m i n d s e t
and attitude of employees, and
management is also critical. Last
but not least, is the introduction of
business ethics and accountability
to secure change tools and control
conspiracies to undermine the
change.
When real BPR and BPM take place
and the role of traditionalists is
minimised, a typical insurance
companys claim process and claims
leakage will be managed in an
improved manner, fundamental
market growth through word of

mouth can be achieved, optimisation
of customer service and cover
handling will happen. In addition,
there will be expanded report
capabilities to proactively manage
work and directives, an enhanced
compliance monitoring and
management scheme will take root,
customer request response time will
highly be minimised, and the number
of employees missing in action will
be reduced
Insurance companies need to do
away with traditional approaches
to their business models if they are
to meet emerging challenges of the
21st Century.
Asseged

G. Medhin (EMBA) is
certified by the Chartered Insurance
Institute (CII).
A n n o u n c e m e n t s
Andinet International School (AIS)

Andinet International School (AIS) has become a Cambridge Examinations
Center approved to offer the Cambridge IGCSE, AS/A Levels, and AICE.
This letter is to extend our invitation to you to join our growing Cambridge
community. AIS students who sat IGCSE exams, for two consecutive years and
AS Level exams, this year, have performed very well and we expect the trend
to continue.
The IGCSE, AS and A Level examinations are the worlds most popular in
international qualifications for 14 to 19 year olds. They are the gateway to
higher education or professional studies in ones home country or abroad.
Such qualifications can help students:
Develop strong academic and personal skills that lead to a successful
life
Gain acceptance at colleges and universities around the world
Position themselves to take advantage of better career opportunities
Andinet International School is accredited to teach the Cambridge International
Programme.
For the 2016/2017 school year, AIS will offer the following IGCSE courses:
Mathematics
Physics
Biology
English (First Language)
Chemistry
Global Perspectives
French (Second Language)
ICT
Advantages of AIS include: small class sizes, character development, extracurricular activities such as Model UN, Peace Club, Leadership Club and an
excellent athletics programme. If you would like to know more about our
programme, please contact:
Ms. Nefertiti Makeda, M.Ed., Head of Centre ET004, at nefertiti.makeda@
andinet.edu.et or you may call our admissions office directly: +251 116
479986 to inquire about registration and enrollment.
Andinet International School (AIS) seeks inspired and creative teachers who have chosen
the teaching profession as a career and who are:

Passionate and enthusiastic about student learning

Competent in teaching and skilled in differentiating instruction

Outstanding in work ethic

Internationally minded

Team oriented

Technologically adept

Flexible with a sense of humour

Forward thinking

Eager to grow professionally because they understand that learning does not end
with your degree

Adaptable to a fast growing and developing school
Now accepting CVs for the following positions:
Cambridge Programme Coordinator

Cambridge IGCSE Teachers

Teachers in all subjects including IT, Music and Art

English Teachers (Native Speakers are given preference)

French Teachers

School Counselor

Students Supervisor (minimum diploma in a related field)
Qualifications: Minimum requirements-Bachelors Degree in subject with significant
experience accepted, (Bachelors Degree in Education preferred), at least three years teaching
experience, (relevant teaching certifications for internationals), strong communication
skills, fluent in spoken and written English (examination will be administered).
Materials needed: CV with cover letter, photo, copy of degrees and certifications, three
letters of recommendation and names/contact information of three referees. Original
degrees and certifications must be shown at interviews.
We are committed to: Offering a competitive salary and benefits commensurate with
education and experience, building a collegial school community that upholds the school
mission and vision, providing a positive work environment, support to teachers, and
professional development.
You may apply to:
Andinet International School
Human Resources Office
Gurd Shola (on the way to CMC) behind the Ethiopian Athletics Federation Building
near Water Works Office
P.O.Box 1289
Addis Ababa, Ethiopia
Telephone: +251 116-47-99-89
E-mail: ais@ethionet.et; Website; www.andinet.edu.et
Deadline for Application: Ten days after this vacancy announcement is published in the
newspaper(s).
Only short listed candidates will be contacted for interviews. The school reserves the
right to employ before the ten days if suitable candidates are found.
Brexit: Who Would . . .

a full blown political storm it is
currently going through.
The economic and financial
repercussions of the Brexit
will have a knock-on effect on
African economies. The UK is a
financial hub in Europe; thus,
countries such as South Africa,
Nigeria and Kenya, whose
economies are well integrated
with the UK, will feel the impact
on their financial markets,
particularly if the UKs economy
goes into recession. South
Africas battered economy has
already started to feel the Brexit
impact as its currency, the
rand, is on a downward spiral.
A number of South African
countries, which have firms
listed in the London Stock
Exchange, have lost a hefty
amount of their stock values as
a result of the current turmoil.
For countries like Kenya with
the twin fiscal and current
account deficit, the Brexit
means external financing of
the deficit is likely to get more
expensive. The weaker Kenyan

Shilling will make imports more
expensive and one of Kenyas
top exports, cut flowers, could
suffer from a declining pound
Sterling as Britains appetite for
imports is expected to be low.
Britain exit from the EU could
not have come at worse time
for Nigeria, Africas largest
economy. At a time when it is
struggling to fix its economy, the
immediate effect of the Brexit
will have serious ramifications
for Nigerial, which is already on
the brink of a recession.
The UK is Nigerias largest
source of foreign direct
investments; it is also an
important export destination.
A slowing British economy and
its reverberating effects could
signal a drop in investments,
trade and remittances.
An increase in the price of
bonds is another outcome of
the UKs decision to leave the
EU, making it difficult for a
number of African countries,
including Ethiopia, to access

the Eurobond market for
investment funding. Any
continuation of the market
volatility will have significant
implications on past and future
foreign bond borrowings.
Following the leave votes,
African Eurobonds already
plunged. Nigerias dollar bond
due in 2023 has seen its yield
rate raised to 7.3pc, according
to Bloomberg data. Ethiopias
2024 Eurobond yields climbed
up by 10 basis points to reach
7.98pc, the highest since June
14, 2016. Yields on Rwandas
dollar debt due into 2023 have
spiked to 7.59pc.
The biggest impact of the
decision by the majority of the
British public on Africa will
come due to the end of British
largesse, its concerns with
and responsiveness to global
development issues. The UK
has been a staunch opponent
of the European Common
Agricultural Policy (CAP)
The Meaning . . .
same is already rising. This
is European politics at its
stupidest (also very much on
display vis--vis Greece). The
remaining EU should, instead,
reflect on its obvious failings
and fix them. Punishing
Britain by, say, denying it
access to Europes single
market would only lead to
the continued unraveling of
the EU.
So what should be done?
I would suggest several
measures, both to reduce
the risks of catastrophic
feedback loops in the short
term and to maximize the
benefits of reform in the long
term.
First, stop the refugee surge
by ending the Syrian war
immediately. This can be
accomplished by ending
the CIA-Saudi alliance to
overthrow Bashar al-Assad,
thereby enabling Assad (with
Russian and Iranian backing)
to defeat the Islamic State and
stabilize Syria (with a similar
approach in neighboring
Iraq). Americas addiction
to regime change (in
Afghanistan, Iraq, Libya, and
Syria) is the deep cause of
Europes refugee crisis. End
the addiction, and the recent
refugees could return home.
Stop NATOs expansion to
Ukraine and Georgia. The
new Cold War with Russia is
another US-contrived blunder
with plenty of European
naivet attached. Closing the
door on NATO expansion
would make it possible to
ease tensions and normalize
relations with Russia, stabilize
Ukraine, and restore focus on
the European economy and

the European project.
Do not punish Britain.
Instead, police national
and EU borders to stop
illegal migrants. This is not
xenophobia, racism, or
fanaticism. It is common
sense that countries with the
worlds most generous socialwelfare provisions (Western
Europe) must say no to
millions (indeed hundreds
of millions) of would-be
migrants. The same is true
for the US.
Restore a sense of fairness
and opportunity for the
disaffected working class
and those whose livelihoods
have been undermined by
financial crises and the
outsourcing of jobs. This
means following the socialdemocratic ethos of pursuing
Restore a sense of
fairness and opportunity
for the disaffected
working class and those
whose livelihoods have
been undermined by
financial crises and the
outsourcing of jobs.
P ag e 45
designed to favour European

farmers and hinder African
farmers competitiveness in the
export market. With more than
60pc of Africas economically
active population working
in agriculture, the subsidies
play an important role in the
livelihoods of a majority of
Africans.
Now with the British departure,
there will not a be strong voice
within the bloc advocating for
African farmers.
Britain is the largest contributor
...countries such as South Africa, Nigeria

and Kenya, whose economies are well
integrated with the UK, will feel the impact
on their financial markets...
of development aid to Africa
with a commitment to spend
0.7pc of its Gross National
Income (GNI) on development
aid. If the UK economy goes
into recession, the flow of aid to
Africa will diminish substantially
affecting countries such as
Ethiopia and Sierra Leone.
Trade relations between the EU

and Africa are governed by the
Cotonou Agreement of 2000
as well as a series of regional
deals under the economic
partnership agreements.
The UKs eventual departure
from the EU will fundamentally
change the partnership
agreement between the trading
blocs such as COMESA, EAC
and ECOWAS. It is also an
inopportune moment for many
African countries currently
facing external shocks due
to falls in commodity prices
and high costs on external
borrowing. There is not much
they can do except to adjust
their domestic economic
policies to the new reality.
Assuming the worst case
scenario, Brexit will leave
behind a legacy of disruptive
impact, particularly in shortterm uncertainty. The long-term
impact will not be felt any time
soon.
Eyob

Tesfaye works for
UN agencies; none of the
comments made here reflect
the views of the agencies for
which he works.
A n n o u n c e m e n t
ample social spending for

health, education, training,
apprenticeships, and family
support, financed by taxing the
rich and closing tax havens,
which are gutting public
revenues and exacerbating
economic injustice. It also
means finally giving Greece
debt relief, thereby ending the
long-running eurozone crisis.
Focus resources, including
additional aid, on economic
development, rather than
war, in low-income countries.
Uncontrolled migration from
todays poor and conflictridden regions will become
overwhelming, regardless of
migration policies, if climate
change, extreme poverty, and
lack of skills and education
undermine the development
potential of Africa, Central
America and the Caribbean,
the Middle East, and Central
Asia.
All of this underscores the
need to shift from a strategy
of war to one of sustainable
development, especially by
the US and Europe. Walls and
fences will not stop millions
of migrants fleeing violence,
extreme poverty, hunger,
disease, droughts, floods,
and other ills. Only global
cooperation can do that.
J e f f r e y D. S a c h s i s
professor of Sustainable
Development, Health Policy
and Management; and
Director of the Earth Institute
at Columbia University. He
is also Director of the UN
Sustainable Development
Solutions Network. This
article is provided to Fortune
by the Project Syndicate.
Dashen Bank s.c.

DB/Vacancy- 030/16
Dashen Bank is pleased to announce the following vacancy.
Job Title:

1. Customer Service Agent I

2.Customer Service Agent I-Front Office
Required Qualification
B.A. Degree in Accounting/Management/Economics and

related fields with a CGPA of 2.50 and above
Relevant

Experience:-
Not required
Other

requirement:-
Computer Literacy
Place
of Work:
Awassa District, Bahir Dar District, Mekelle District,

Adama District, Jimma District, Addis Ababa
Salary

:As per the attractive salary scale and benefit packages of the
Bank
Interested applicants fulfilling the above requirements are invited to submit in
person their application letter, curriculum vitae and copies of non-returnable
supporting credentials along with the original documents for verifications to
Human Resources Management Department located near to Nefas Silk Paint
Factory ( ) until July 12, 2016.
NB:- Graduates of the year 2008 E.C can apply with their last year CGPA or
3rd first semester CGPA
- Applicants are required to indicate their preferred place of work
in their application and centre of examination when they come for
registration.
To: THE MANAGER-HUMAN RESOURCES
MANAGEMENT DEPT.
DASHEN BANK
P.O. Box 12752
Addis Ababa
P ag e 46
P ag e 47
P ag e 48
.
Habesha Cement Share Company
Vacancy Announcement
Habesha Cement S.Co would like to invite qualified and competent applicants for the following vacant positions:
S.N
Position
Qualification
Experience
BA/BSc/MA/MBA/MSC
Corporate
Degree in Economics/
Planning & Risk Business Administration/
Analysis Service Finance/Statistics or other
Head
related discipline
BA/BSc Degree in
Economics/Business
Planning Expert Administration/ Finance/
Statistics or other related
discipline
BA/MBA/MA Degree
in Marketing/ Business
Senior Market
Administration/
Researcher
Management/ Economics
or other related discipline
BA/BSc Degree in
Economics/Business
Promotion
Administration/ Finance/
Officer
Statistics or other related
discipline
BA Degree in Marketing/
Business Administration/
Sales Officer
BA/MBA/MA Degree
in Marketing/ Business
Brand Manager Administration/
BA/BED/MA/MBA in
Management/ Business
Administration/Public
Administration or other
Training &
related discipline
Development
BSc/MSc in Chemical/
Division Head
Process/Electrical/
Mechanical Engineering
or related engineering
discipline
Bachelors 11 years'
Masters 9 years' relevant
experience out of which
at least 4 or 3 years' in
related senior position
Skills Required
Good leadership skills, motivated, self-starter, good team
player
Good communication skills, motivated, self-starter, good

5 years' related experience team player
Bachelors 8 years' ;
experience
Good communication skill, motivated, self-starter, good

team player, easy learner

5 years' related experience team player, easy learner
5 years' related experience
Bachelors 8 years';
experience
Bachelors 11 years';
Good communication skill, motivated, self-starter, good

team player, persuasive skill, easy learner

Bachelors 10 years';
DUTY STATION: Position No. 1 6 Addis Ababa

: Position No. 7 ,Holeta Plant Site
Employment Type: Permanent
SALARY: Negotiable and Attractive
NUMBER REQUIRED: One for each position. Interested applicants who fulfil the above requirements can submit their
application, CV and non- returnable copies of their testimonials in person to HRM & Admin Department located at
Wello Sefer, Ethio-China Friendship Street, new building 8th floor, in front of Wengelawit Building within 10 working
days after this vacancy announcement.
HABESHA CEMENT SHARE COMPANY
Tel. 0966-21-5532
P ag e 49
ADMAS UNIVERSITY
EXTERNAL VACANCY ANNOUNCEMENT
The University would like to invite qualified and skilled applicants to the following vacant posts
No.
1
10
POSTS
Campus Deans
EDUCATIONAL
QUALIFICATION
MA, MBA or MSc and
above in any discipline
preferably in business
and education fields
Academic Department
Head for:
- Business Management
- Accounting & Finance
- Marketing Management
- Computer Science
MA, MBA or MSc

and above in their
respective fields
Instructors for :
- Business Management
- Accounting & Finance
- Marketing Management
- Computer Science
MA/MBA/MSC,
and above in their
respective fields
Head, Training &

Consultancy
Head, Marketing and

Corporate Communication
Head, Quality Assurance

Office
Head, Administration and

Finance Office
Head, Research, Promotion

& Coordination office
Officers
- Registrar
- Library
- Assistant for Administration office
- ICT support officer
TVET Trainers:
- Accounting
- Management
- IT
- HRM
MA/MSc degree in any

filed preferably in
business related fields
BA and above in
marketing or related
fields
BA or above in
Education or related
fields
REQUIRED EXPERIENCE AND ESSENTIAL SKILLS
No. REQUIRED
PLACE OF WORK
Addis Ababa
(Mekanissa and at other
campuses)
- Five years experience in an academic institution as a

head of a college, faculty or department.
- Knowledge of academic rules, regulations and
practices.
- Demonstrated ability in managing and coordinating
students and faculty staff.
- Attentive to details.
- Good working Knowledge of computer applications
- Two year's relevant experience in education sector
- Working Knowledge of academic rules and regulations.
- Two years of teaching experience at tertiary level.

- Good command of written and spoken English.
- Committed to be involved in research and various student support services.
Mekele Campus
Bishoftu
Campus
16
Mekele Campus
Bishoftu
Campus
40
- Three years proven experience in related positions.

- Proven expertise in conducting research and training
- Extensive understanding of the contemporary industry and business operations and practices.
- Ability to organise and work with team of experts.
- Two years of direct experience in overall provision of

Quality Assurance.
- Good employee relations
- Good Knowledge of developing and updating working
documents .
- Two years of teaching experience at tertiary level.

- Good command of written and spoken English.
- Committed to be involved in research and various student support services
- COC certified in all levels
Addis Ababa Mekanissa

Campus
Mekele Campus

Campus
Mekele Campus

Campus
Mekele Campus
MA/ MSC holder in any - Three years relevant experience which involves enfield preferably in Social
gagement in studies coordination and Promotion of
Science fields
research, values and results
- Proficiency in relevant computer application software
- Strong analytical skills
BA/ BSc and above in

their respective fields

Campus
Mekele Campus
- Three year's experience in the relevant position

- Capable of handling multitude promotional activities
of a company
- Capable of writing and editing press release, brochures, and other publications.
- Good media relations
- Capable of conducting market research and analysis
- Good working Knowledge of computer application
- Two year's and above relevant experience.

- Functional expertise in their respective fields.
Addis Ababa
( Mekanissa and at other
campuses)
Mekele Campus
Bishoftu Campus
- Three years of direct experience in overall provision of

BA or above
Administration, Finance and HR Services, policies and
in Accounting,
programs at corporate level.
Management or related
- Good employee relations
fields
- Good Knowledge of developing and updating Guidelines, procedures and communicating.
- Good working Knowledge of computer application
BA/ BSc and above in

their respective fields
Or related fields
Addis Ababa
( Mekanissa and at other
campuses)

Campus
Mekele Campus
Two for Each

position
20

Campus
Mekele Campus
Addis Ababa
(Mekanissa and at other
campuses)
Mekele Campus
Bishoftu
Campus
Salary: Negotiable and Attractive

Interested applicants fulfilling the above requirements can submit their CV and copy of non-returnable credentials or testimonials within 15 days of this announcement to
the following address:
Admas University Office of the President Olympia, behind Dembel City Center
P. O. Box 2618 Tele. 011 5 51 40 65/ 011 5 50 88 08 Addis Ababa
P ag e 50
Dashen Bank
..

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ss
EzRemit
Money Transfer
money transfer
simple.fast. safe
(+251) 011 466 1380 (+251) 011 465 3037

dashen.bank@ethionet.et www.dashenbanksc.com
P ag e 51
P ag e 52
Independent News & Media Plc

Bid for Sale of Different Materials
United Nations Development Programme (UNDP) would like to sele the following
materials on competitive bidding. Interested bidders are therefore invited to submit
their bids as per the following instructions:
1. Prospective Bidders can inspect the materials 10:00am to 4:00pm at UNDP Regional
Service Centre for Africa (RSCA) compound from July 4, 2016 to Aug 3, 2016. RSCA
office is located in front of Dembel City, beside/near Deluxe Furniture. Bidders can
collect list of materials and bid submission form from the RSCA.
2. The last day of submission of bids is 4 Aug 2016. Bid documents shall be submitted
with CPO bid bond of ETB 1,000.00 (One Thousand Birr). CPOs will be returned to
unsuccessful bidders.
3. Bids will be submitted on a lot by lot basis. It is not allowed to bid for part of a lot.
Bidders can bid for all or only for the lots they are interested to bid.
4. Materials will be sold in state of their current conditions, as is. UNDP will not
take any responsibility for any claims by bidders after transfer of materials to bid
winners.
5. Bid winners are required to pay the full amount of the winning price and collect the
respective lot/s within a week after they are notified.
6. UNDP reserves the right to appropriate bid securities, if unsuccessful bidders fail to
collect their bid securities within six months after notification of bid result.
7. Bids will be submitted before or on 4 Aug 2016, 3pm at UNDP Ethiopia office in ECA
compound, Congo Building 6th Flour. Late bids will not be received.
8. UNDP reserves the right to reject any or all bids.
Lot
Item description
Lot 1
Electrical materials
Lot 2
Building materials
Lot 3
Furniture
Lot 4
Solar panels
Lot 5
Epoxy coating
Lot 6
Polycarbonate sheets (Lexan Sheets)
ECA Congo Building ,6th floor, Africa Hall

P.O. Box 5580, Tel : +251115444352,
Fax+251115514599
Home Page: www.et.undp.org
IMMEDIATE VACANCY
JOB POSITION:
ASSIGNMENT EDITOR
He or she must be able to supervise and train reporters, handle the

pressure of daily deadlines, and lead by example with truly topnotch writing and reporting skills. Applicants must have the ability
to develop excellent sources and produce groundbreaking stories
about the business sector, together with the reporters they work
with. The successful candidate must be a self-starter with the ability
to react to and cover breaking news and also identify trends and
write diverse features from business arena. The ideal candidate
for this position will possess a working knowledge of both public
and business sectors and have the ability to write daily reports and
edit, if necessary, weekly news stories for and about the economies
of Ethiopia and other countries in the region. The work requires
the ability to file weekly story budgets and give editors advance
notices of stories in progress. The ideal candidate will have excellent
organisational skills and the ability to meet strict deadlines and
work in a fast paced entrepreneurial environment. Three to five
years of experience in writing for newsletters or economic journals
or working in a media environment is preferred but not required.
JOB POSITION
COPY EDITOR
The successful applicant should be a native English speaker

with academic background or experience in literature. He/she is
required to be a fastidious fact checker and guarantee no story
goes up without being 100pc factually correct and 100pc original
content. Ensure all content is written in (Addis) Fortune house
style, with wit and personality. Write headlines, sub heads,
blurbs, and stand firsts for the newspaper and approve all texts
and credits before sign off by the Editor-in-Chief.
GRAPHIC DESIGNERS
Recruitment of Individual National Consultant on Programme

Development: Enhancing National Capacities for Livestock Sector
Development and Transformation,
Procurement Reference no. ETH/IC/2016/049
UNDP seeks the services of a reputable National Consultant with
proven track record of relevant experience to do an assignment as a
National Consultant on Programme Development: Enhancing National
Capacities for Livestock Sector Development and Transformation. In this
public procurement notice, all competent individuals which satisfy the
minimum requirements stated in the ToR are hereby kindly invited to
submit proposals. Hence, both the respective Technical and Financial
Proposals shall be submitted on or before July 13, 2016 at 5:30pm
(UTC+03:00) Addis Ababa/Nairobi Time Zone by CoB in the following
address:
Interested individuals for the captioned service can also download the
IC Proposal Submission Form and ToR (in word file and PDF) from the
following UNDP Procurement Notices links:
Procurement Notices - Advertisement on Recruitment of National
Consultant on Programme Development: Enhancing National Capacities
for Livestock Sector Development and Transformation ETH/IC/2016/049
UNDP Procurement Notices links:
http://procurement-notices.undp.org/view_notice.cfm?notice_
id=30914
Your proposal must be expressed in English and shall be valid for a
minimum period of 120 days. It shall remain your responsibility to ensure
that your proposal reaches the address above on or before the deadline.
Proposals that are received after the deadline shall not be considered
for evaluation.
We are looking for graphic designers to join our creative team.

Responsibilities include but are not limited to creative designs
and layouts of the newspaper and marketing materials for print,
online, banners, and live events. Applicants must have excellent
typographic sense and be able to express abstract concepts
graphically in a dynamic manner. Candidates must have two years
of graphic design and front-end online design experience, strong
organisational skills, and a working knowledge of In Design, Adobe
Page Maker, Photoshop and lllustrator CS.
JOB POSITION
REPORTERS
We are searching for candidates who are graduates of law,

political science, journalism, economics, finance, or literature
from recognised universities. The ideal candidate should handle
the pressures of daily deadlines, not be intimidated by workload
pressure and stress, and have exceptional writing and reporting
skills. Applicants must be well-grounded in news and have the
ability to uncover stories about the economic and business
sectors. Candidates must be able to write five originally sourced
news stories each week, in addition to an unspecified number
of shorter, non-reported daily briefs. Experience is preferred
but is not a strict requirement. Some travel for coverage may be
required.
Independent News & Media Plc
Tegene Building, 7th Floor. Next to Global Hotel on Sierra Leone Street
(Debre Zeit Road)
Tel: 251-11-416-3020 Fax: 251-11-416-3039 P.O. Box: 259, Code 1110, Addis Abeba,
Ethiopia
The Ethiopian Road Transport

Authority is to revamp an evaluation
process for the purchase of biometric
driver's licences that was kept on
hold for the past six months following
bidders complaints over the time the
whole evaluation took to come up
with the preliminary results.
The Authority has formed a new
committee
comprising
experts from its
staff following a
failed attempt to
include similar
expertise from
the Ministry of
Communication
& Information
Technology.
After almost one year of back and
forth, the purchasing process of the
system came under scrutiny following
the Authority's announcement of the
companies that had passed and failed
the evaluation.
Only two bidders, Supercom Ltd from
Israel, and the Moroccan M2M Group
were named as having passed to the
next stages.
Now with the new committee in place,
the appeal by four bidders Safran
Morpho, a French multinational
company; Veridos, a joint venture
of two German companies Giesecke
& Deverient and Bundesdruckerei,
Mhlbauer Group and Madras
Security Printers Ltd, an Indian
company are undergoing evaluation.
Habte Hadush, general manager of Mesfin Industrial Engineering Plc (left), in discussion with Azeb Mesfin, the
CEO of EFFORT (right). Looking on from behind are Mebrhatu Meles (PhD), state minister for Industry (centre)
and during the launching ceremony of Mesfin Industrial Engineering Peugeot Automobile Assembly factory in
Wikro. Peugeot, is the first of its European competitors to enter the Ethiopian market, making Mesfin Industrial
Engineering the first Ethiopian company to assemble European cars. Despite the good news, side issues seem
to drive hyper-emotions of managers
Photo by: Geremew Tigabu
Arguably the greatest friend a man can have is a dog. Apparently dogs forge friendships with each other too
even to the point of sharing a sleeping space on the sidewalks of Ambassador. Peter McWilliams sums it up as
follows: "Be willing to be uncomfortable. Be comfortable being uncomfortable. It may get tough, but it's a small
price to pay for living the dream." These guys seem quite comfortable though, evoking yet another saying - "Let
sleeping dogs lie."
Ethiopian Airlines acquired the first Airbus

in Africa, an A350-900 aircraft, on June
29, 2016. The aircraft was purchased
from AerCap Holdings, a company with
approximately 1,670 owned, managed
or on order aircraft in its portfolio.
The A350 was originally conceived in
2004. It provides exceptional comfort
applying modern technology for a unique
passenger experience.
Ethiopian is the second airline after
Singapore Airlines to own an A350XWB in
the Star Alliance Network, an alliance of
28 members established in 1997.
The country's flag carrier owns the
majority share of the pan-African
passenger and cargo network, operating
the youngest and most modern fleet to
92 international destinations across five
continents. It has registered an average
growth of 25pc over the past seven years.
The Airline is currently implementing a
15-year strategic plan called Vision 2025
that will see it become the leading aviation
group in Africa with seven business centres.
Nokia to Renew
Presence in Ethiopia
with New Office
BREAKFAST
Enterprise Partnership, 9EP, a social

enterprise established in 2013 to
create more jobs for people living
in poverty signed an agreement with
Ethiopian Horticultural Producers
and Exporters Association (EHPEA)
to contribute 8.5 million Br to
finance an intervention that enables
commercial farms to increase exports
of fruits and vegetables.
Implementation of the project will
take place within period of one year
and targets generation of over 3,000
jobs.When the intervention results in
the export of greater volumes of fruits
and vegetables, productive farms will
tend to hire more labour.
The design of Commercial Farms'
Export Facilitation Intervention was
discussed by two studies undertaken
by 9EP to identify constraints and
opportunities in the sector, that has
been daunted by commercial farms'
limited market linkages. Areas of
intervention include creating broader
market linkage between commercial
farms and importers and enabling
farmers to meet standardised quality
requirements, among others.
The social enterprise facilitates
market development in six sectors,
namely, textiles, livestock, fruits and
vegetables, agro-industry and the
development of small and medium
enterprises.
The Sustainable Women's Savings &

Credit Cooperatives Union has given
insurance coverage of 1.4 million Br to
its 643 members. Life insurance, funeral
insurance, maternity insurance, retiree
insurance and financial insurance are the
types of insurance covered by the Union.
Beside the insurance coverage, the
Union gave credit of six million Birr to
280 women who needed to pay a fee for
their for their condominium housing.
Of those women, 50pc had started to
sustain themselves by renting the house,
according to sources close to the Union.
Another 223 women were also
beneficiaries of the Union's credit facility.
They received credit totaling 12 million Br.
Sixty two per cent of those women started
new businesses while the others used the
credit to address housing problems.
The Union was established in 2005/6 by
12 cooperatives and 30,000 members
with capital of 100,000 Br. Currently, the
cooperatives have 68 unions and more
than 14,000 individual members with paid
up capital reaching close to 11 million Br.
Ethiopian
Pioneers Airbus
Service in Africa
FRIENDS
Enterprise,
Horticulturalists
Sign 8.5m Br
Intervention Project
P ag e 53
Women's Union Gives

Million Br Insurance
Coverage
Emotions
Federal Transport
to See Appeal from
Four Bidders
R a d a r
Each year, Muslims spend the ninth month of the Islamic calendar observing the annual fast of Ramadan, one of
the five "pillars" of Islam. Muslims who are physically able are required to fast each day of the entire month, from
sunrise to sunset. The evenings are spent enjoying family and community meals, engaging in prayer and spiritual
reflection, and reading from the Quran. Having fruits at the dinner table is a customary way to break the fast.
Nokia celebrated the opening of its new

office in Addis Ababa on June 30, 2016.
Dedicated to network infrastructure
Nokia is looking for business partners to
build networks and is offering ultra-fast
broadband services in the mobile and
fixed broadband networks market to
enrich its presence in Ethiopia once again.
Upon celebration of its comeback office
inauguration, Daniel Jaeger, Nokia's head
of market unit Central, East and West
Africa announced the company's interest
in operating in Ethiopia's telecoms
infrastructure market with mobile
networks.
The company provides network solutions,
broadband for fixed networks which
allows customers to use Wi-Fi at home,
optical routers that transport data at the
speed of 400GB per second and builds
faster networks.
''Despite Nokias intent to be involved in
the country's network infrastructure,''
CEO of ethio telecom, Andualem Admassie
states that the enterprise has no plan for
new deals.
P ag e 54
The Management and Employees of

Derba MIDROC
wish you a Happy Eid Al-fitr
Derba
Drilling
DERBA CEMENT
P ag e 55
P ag e 56
Movie
Movie Review
Review
coming soon
Ice Age: Collision Course
July 22
Weekly Revenue
Qeyaye Qenbetoch (Red

Leaves) is a film about an
Ethiopian community that
practices an ancient form
of Judaism and now forms
a sizeable community in
Israel. For this bare, brave,
bold debut film that shocks
and illuminates, Fortunes
in-house film critic,
Christian Tesfaye, awards
an almost full sky of nine
stars out of 10.
Half a lifetime ago, the Ethiopian National
Theatre was inaugurated to coincide with
the King of Kings Silver Jubilee. The theatre
did not look like much from the outside
but the interior, even several decades on,
makes the jaw slacken. But then again,
Emperor Haile Selassie Iwas a very hard
person to impress. It is rumoured that
he found the large lion statue in front of
the theatre mediocre because it was not
plausible as a lion (the unique design
has since become a landmark in Addis).
Nonetheless, even such an imposing figure
as the Emperor could not have denied that
the theatre itself was exceptional. Other
internationally famous great halls may be
larger and brighter, but this one, despite
its immodest beginnings, is testament to
a calm, timeless architectural wizardry.
Fast forward to 2016 - I sat in the
same theatre for a film screening. The
attendance was replete, mostly because
it was free to get in and there were free
delicacies in the anteroom. All of this, in
expectation of a unique Israeli-Ethiopian
movie, Qeyaye Qenbetoch, that was
released two years ago.
The film tells the story of an elderly
member of the Bete Israel community
(Falasha, as they are known in Ethiopia)
called Misganaw. For decades now he
has lived in Israel, and all that time as an
immigrant. Despite a change of geography
and culture, and as a result of living
amongst a protected Ethiopian community,
and his own conservative attitudes,
he remains intrinsically Ethiopian. On
the anniversary of his wifes death, he
announces to his large family that he has
sold his house and that he plans to spend
the rest of his life commuting between his
relatives houses; cuing the film to unfold
the secrets and woes of the familys life.
First, Misganaw visits his brother. A form
of celebration ensues; there is laughter
and for an instance, there appears to be
happiness too, but it does not last long.
It seems that he does not approve of his
youngest daughters, according to him,
racially inferior love interest. He pushes
her away by calling her all kinds of names.
Later, when he finds out that most of the
family sides with the daughters choice, he
leaves his brothers house for that of his
son. But he does not find any consolation
there either - he discovers that his son
cheats on his wife. This enrages Misganaw,
while it never occurs to him that his sons
lack of respect for his wife might be
caused by his very own obvious dislike
of women.
The only person from the cast and
crew that showed up for the Ethiopian
screening was esteemed actor Debebe
$73.2M
Finding Dory
$41.6M
Weekly Revenue
Independence Day:
Resurgence
$18.4M
Weekly Revenue
Central
Intelligence
$16.7M
Weekly Revenue
The Shallows
Film Review |By Christian Tesfaye - special to Fortune
Qeyaye Qenbetoch (Red Leaves)

Strips away Family Veil
Eshetu, who plays the lead role in the
film. To western audiences, he is the
most popular Ethiopian actor, as he ones
worked in Shaft in Africa, a sequel to one
of the most acclaimed Blaxploitation
films of all time. His performance in this
film is wistful. Not for a second does he
look like he is acting, but being. The
strength in his depiction of Misganaw lies
in his mannerisms - the looks he gives,
the way he walks and violently retorts. It
is almost as if he was playing himself, and
is being honest about it. But then again,
after the film ended, Eshetu gave a small
speech on stage, and sounded modest,
tolerant, nothing like the character he has
just enlivened. This is the mark of a great
actor, and the performance, the greatest
for any actor in any Ethiopian movie.
Equally important to the films primal
intensity is writer/director Bazi Gete. He is
himself part of Bete Israel and lived most
of his life in an Ethiopian community in
Israel. This is his debut movie and it is
obvious - Qeyaye Qenbetoch has that raw
overstated passion. It is not apologetic,
and its cinma vrit, a style of filmmaking with simple equipment, is visually
battering. Gete might not have set foot in
Ethiopia, but has obviously spent a lot
of time around Ethiopians and observed
their typical notable shortcomings overwhelming secretiveness, endless
obedience and catastrophic sexual
repression.
Most audiences at the screening
miscalculated the film. Their reactions
were largely based on what the film
unintentionally pretends to be - the life
of immigrants and that could not be
further from the truth. It is incredible how
bad people are at making correlations
between their own lives and what is on
the screen. I am not sure if this is because

they do not take cinema seriously or mere
self-denial.
Qeyaye Qenbetoch could have easily
been made right here in Ethiopia. The
setting itself is uncannily Third World.
The weather is sunny, but not sunny in
that bright, clean, beautiful manner as in
western movies; sunny in a sticky, dusty,
suffocating sort of way. The houses are
all cramped and inadequately lit. Anyone
Qeyaye Qenbetoch
has that raw

overstated passion.
It is not apologetic,
and its cinma
vrit is visually
battering.
making his way into the theatre while the
film is in progress will never guess it was
set anywhere but in Ethiopia.
More importantly, it is the Ethiopian
mindset that is palpable to those who
watch objectively. Misganaw is above all
a proud man; if he has phlegm obviously
situated right on his nose, he will punish
the first person to point it out to him. He
loves his family sure, but it is doubtful
if he loves them more than the idea of
family. The first thing he did when he
arrived in Israel was to help his relatives

make it to the Promised Land. Thus, either
consciously or unconsciously, he holds
this against them; he demands utmost
respect and obedience because without
him they would still be in Ethiopia.
But what is his family to do? Live by the old
mans 19th Century rules and regulations?
There are two audiences perspectives
on the film, one that views Misganaw as
a poor old man maltreated by those that
owe a lifetime debt to him, and the second
that sees him as the source of all the pain
and heartache that exists around him. In
a single day he might get into a heated
argument with five different people and
it will never occur to him that maybe, just
maybe, the problem emanates from him.
He is paranoid - he thinks that everyone
is out to get him. And, in a way, they are.
Because he is old and his way of thinking
has aged, time and society have simply
stopped accommodating him.
Misganaw is Ethiopias first true
antihero. We never like him, but his life
is fascinating, so we follow his journey,
probably hoping to figure out just what
went wrong. In both the two most highly
acclaimed Ethiopian movies Teza and
Lamb we do not really get to see the
Ethiopian society criticised but in the
most basic of ways; they may touch on the
faults of backwardness, but say naught of
modern societys deficiencies. Saying so especially in the bare, brave, bold manner
this film does - is almost considered
taboo. Hopefully, this perceptive film sets
a trend toward more honest, probing
Ethiopian films that can shock and
illuminate. But it is doubtful; Qeyaye
Qenbetoch does not even have a release
date for Ethiopia.
$7.8M
Weekly Revenue
Free State of
Jones
$7.7M
Weekly Revenue
The Conjuring 2
$5.7M
Weekly Revenue
Now You See Me 2
$2.5M
Weekly Revenue
X-Men: Apocalypse
$2.4M
Weekly Revenue
Teenage Mutant
Ninja Turtles: Out
of the Shadows
10
$2.1M
Weekly Revenue
Alice Through the

Looking Glass
Coming Soon
The Infiltrator
July 15
P ag e 57
This column gives advice about new technologies as well as gadgets and provides information on how to use new products from the
digital world. Any questions on the day-to-day operation of one's computer can be addressed by emailing Dereje who is willing to
advise or assist readers whenever possible.
with Dereje Letiyebelu
email: d.letybelu@gmail.com.
Google Glass Helps Autistic Children

Like many autistic children, Julian
Brown,10, has trouble reading emotions
in people's faces, a major challenge for
people with the neurological disorder.
Now the boy is getting help from "autism
glass" - an experimental device that records
and analyses faces in real time and alerts
him to the emotions they are expressing.
The facial recognition software was
developed at Stanford University and runs
on Google Glass, a computerised headset
with a front-facing camera and a tiny
display just above the right eye.
Julian is one of about 100 autistic children
participating in a Stanford study to see if
"autism glass" therapy can improve their
ability to interpret facial expressions.
This machine helps with the emotions, you
know, recognising them, Julian said.
He wears the device each day for three
20-minute sessions when he interacts
with family members face-to-face - talking,
playing games, and eating. The programme
runs on a smartphone, which records the
sessions.
When the device's camera detects an
emotion such as happiness or sadness,
Julian sees the word "happy" or "sad" or
a corresponding emoji flash on the glass
display. The device also tests his ability to
read facial expressions.
"The autism glass programme is meant
to teach children with autism how to
understand what a face is telling them.
And we believe that when that happens
they will become more socially engaged,"
said Dennis Wall, who directs the Stanford
School of Medicine's Wall Lab, which is
running the study.
Stanford student Catalin Voss and
researcher Nick Haber developed the
technology to track faces and detect
emotions in a wide range of people and
settings.
"We had the idea of basically creating a

behavioural aide that would recognise
the expressions and faces and then give
social cues according to those," said Voss,
who was partly inspired by a cousin who
has autism.
Google's only involvement was that it

provided about 35 Google Glass devices
to Stanford. The Silicon Valley tech giant
stopped producing the headset last year
after it failed to gain traction, but the device
found new life among medical researchers.
Brain Power, a Cambridge, Massachusettsbased start-up, is also developing Google

Glass-based applications to help children
with autism improve their social skills.
Autism advocates are excited that
researchers are developing technologies
to help the estimated one in 68 American

children diagnosed with autism spectrum
disorder.
Glass and wearable technology are the
future. They are going to play a pivotal
role in how we understand, manage
and diagnose disorders like autism,
said Robert Ring, chief science officer at
Autism Speaks.
Currently, many autistic children learn
to read facial expressions by working
with therapists who use flashcards with
faces expressing different emotions. The
Stanford team hopes autism glass can
provide a convenient, affordable therapy
that families can do at home.
"Kids with autism are not getting enough of
the care that they need for as long as they
need it, and we need to fix the problem,"
Wall said.
If the study shows positive results, the
technology could become commercially
available within a couple years, Wall said.
Seven-Port USB Charging Station
Elos Touch Advance
The Satechi 7-Port USB Charging Station Dock would

be the perfect solution for users in need of a device
in order to quickly and efficiently charge multiple
smart devices simultaneously, without the clutter of
wires. It boasts of a trio of 2.4A ports and a quartet of
1A ports, which means this dock can power Android
and iOS smartphones and tablets at the same time.
The 7-Port USB Charging Dock Station boasts a
compact (7.4 x 5.5), space-saving form factor to
reduce clutter and avoid taking up valuable desk and
counter top space. The user-friendly dock will also be able to charge smartphones
and tablets while they are still in their protective cases. Simply hook up the station to
a wall outlet, load in up to seven devices, press the power button, and the blue LED
light will then let you know that it is powered on, and ready to charge.
The latest generation of at-home laser

hair removal, the Elos Touch Advance,
will feature 500,000 pulses, making it
the companys most powerful personal
laser hair removal machine. Users
are able to enjoy the same smooth,
permanent effect as professional laser
hair removal, all within the confines
and privacy of their own home.
You will be able to make use of the Elos
Touch Advance on the entire body. On
offer is a reduction of at least 89pc in
hair after six weeks to seven weeks of treatments, all the while being suitable
for all skin tones and hair colours.
LI-FI - Economical, Eco-friendly Alternative

With advances in technology, every day
a new idea is nurtured in someone's
mind that might change the way we
function. One such groundbreaking idea
popped into the mind of the brilliant
Professor Harald Haas of the University
of Edinburg, UK, back in 2003. His idea
was to use Light Emitting Diodes as a
medium to transfer data from one system
to another. This topic became widely
popular after his TED Talk in 2011.
The question of the hour is what exactly
is LI FI?
LI-FI is a shorthand representation for
Light Fidelity.
In simple terms, it is a possible alternative
to Wi-Fi. While Wi-Fi uses radio signals
wirelessly, LI-FI is the concept of using
visible Light Spectrum.
LI-FI works with the LED lights that are
turned into wireless transmitters. To
receive data, we need a dongle of sorts
that acts like a modem. This dongle can
be connected to a laptop or a tablet
through USB Ports. There is a sensor in
the modem that catches the light coming
down, and an infrared component that
sends the signal back to the light source.
The LED Lights have a networking
component that allow multiple users to
connect to a single light source and give
the ability to move from one light source
to another without losing the connection.
The long term aim of the innovator is to
get this technology inside various devices

and lighting grids. In order to make
this technology widely adaptable, it is
necessary to compress the dongle into
an ASIC (Application Specific Integrated
Circuit) or SoC (System on a Chip), to
make it easily incorporated into various
devices like smartphones, laptops,
tablets, accessories and many more.
Advantages of Adopting LI-FI
- As light does not penetrate through
walls, this technology allows the users
to create secure networks with much
higher security.
- The strength and efficiency of the
network can be enhanced with increasing
the number of light sources.
- Once these sensors and dongles
become more adaptable, we can use
a low cost, environmentally friendly
technology in our everyday lives.
- LI-FI can boost its capacity to transfer
data roughly 100 times faster than Wi-Fi
technology by the usage of laser LEDs.
- The LI-FI network allows users to roam
around the room or anywhere in the
installed lighting grid.
- LI-FI adoption can reduce the strain
on the existing networks and free the
bandwidth for outdoors.
LI-FI might seem a better option than
existing Wi-Fi system, but it is actually
complimentary. It would take a minimum
of 10 years to 15 years for the technology

to be incorporated into our daily lives.
Fantastic Features of iOS 10
The announcement of every new version
of the iOS brings with it a set of exciting
new features that expand and transform
what the iPhone and iPod touch can do.
That is certainly true of iOS 10.
Revealed by Tim Cook at Apple's
Worldwide Developers Conference
(WWDC) in San Francisco, the new
version of the operating system that
runs on the iPhone will not actually
be released until the fall. Here are the
features to get excited about while we
wait.
- Revamped Apple Music
The Music app that comes with iOS, and
the Apple Music streaming platform, are
major long-term successes for Apple,
especially Apple Music, which racked
up over 15 million paying customers
in under two years. That success has
been in spite of many complaints about
the app's overly complex and confusing
interface. Users of iOS 10 unhappy with
that interface will be happy to learn
that it is been overhauled. Now there
is an attractive new design, it also adds
song lyrics and removes the superfluous
Connect feature that lets users follow
artists.
- New Ways to Communicate in iMessage
Your options for communicating in the

Messages app are limited. Sure, you
could send texts and photos and video,
and then audio clips, but Messages did
not have the kind of fun features found
in other chat apps until iOS 10. With
this release, Messages gains all kinds of
cool ways to communicate more clearly.
There are stickers and visual effects that
can be added to texts, and messages to
make them look louder; recipients can
swipe them for a dramatic revelation
including suggestions for words that
can be replaced by emoji (which are
now three times bigger).
- HomeKit App
Most iPhone users have never heard
of HomeKit since it is not used in
many products. However, it could
change their lives. HomeKit is Apple's
platform for smart homes that connect
appliances, HVAC, and more to a
single network and allows them to be
controlled from an app. Until now, there
has not been a good app to manage all
HomeKit-compatible devices. This app
will not be totally useful until there are
more HomeKit-compatible devices and
more people have them in their homes,
but this is a big start towards making
your home smarter.
- Voicemail Transcriptions
When Apple introduced the iPhone,
Visual Voicemail meant you could
identify the senders of your messages

and play them out of order. In iOS 10,
every voicemail is also transcribed into
text so you do not have to listen to it at
all if you do not want to. This is a really
helpful feature for the people who will
use it.
Splice
DropSend
You can now send large files via
email freely and securely with
DropSend. They offer 256 AESSecurity Encryption and you do not
have to install software.
Fill out the form with your contact
details and message. Click the
Select a File button to choose the
file you want to send. Next, click
the green Send Your File button,
and away your message and file go.
Check the FAQ or Help page if you
have any problems or questions.
http://www.dropsend.com
P ag e 58
P ag e 59
Syndication articles from
The Financial Times [2013]. All Rights Reserved. Not to be redistributed copied or modified in anyway.(The client) is solely responsible for providing this translated content and the Financial Times Limited does not accept any Liability for the accuracy or quality of the translation.
Tanzania's new president shakes

up east Africa's 'sleeping giant'
David Pilling and John Aglionby - Dar es Salaam
n a crowded street in Dar

es Salaam, where tailors
and scrap-iron merchants
vie for space with vegetable
hawkers, barber shops and butchers
displaying slabs of meat, one
incantation is on everybody's lips:
"Magufuli".
Last October, to virtually everyone's
surprise, John Pombe Magufuli,
a less-than-glamorous cabinet
member who had done two stints
as public works minister, became
president of Tanzania.
To get there he beat better-connected
rivals from the ruling Chama Cha
Mapinduzi "Party of the Revolution",
which in one form or another
has ruled the east African nation
since independence. Now almost
everyone, especially the poor, are
putting their faith in a new leader so
reputed for getting things done he is
known as "the Bulldozer".
Too often in Africa, exciting new
leaders with a radical agenda
and supposedly impeccable
moral credentials have started off
promisingly, only to ossify into
ineffective autocrats. That said, Mr
Magufuli, 56, embarking on his first
five-year term, is creating a buzz of
expectation that at last Tanzania has
found a leader capable of awakening
the "sleeping giant" of east Africa,
one with huge, largely unexploited,
gas and mineral resources.
"He walks the talk," says Samuel
Wangwe, principal research
associate at the Economic and Social
Research Foundation in Dar es
Salaam. "When he says something,
he follows through. He's not a liar."
The presidency commands huge

constitutional power - and Mr
Magufuli has not been afraid to use
it. He has waltzed into government
offices and fired people on the spot.
He is even rumoured, like a Chinese
emperor, to travel in disguise in
order to sniff out malfeasance. He
pressed ahead with a highly flawed
electoral process in Zanzibar, a
semi-autonomous island, which
deprived the Zanzibari opposition
of what looked like victory. Nor has
he been shy of using sweeping cyber
crime legislation to silence critics.
This month, a court sentenced
a man to three years in jail for
insulting the president on Facebook.
Mr Magufuli, the son of a peasant
farmer, and a chemical engineer by
profession, indicated what kind of
leader he would be from the getgo. He scrapped normally lavish
independence day celebrations and,
borrowing a stunt from Narendra
Modi, India's prime minister, took to
the streets with a broom, declaring
he would spend the money saved
on sanitation.
He has clamped down on foreign
travel for officials, personally vetting
all trips. His predecessor, Jakaya
Kikwete, was so fond of foreign tours
he was christened Vasco da Gama,
after the Portuguese explorer.
In his first budget, presented
this month, he pledged 40 per
cent of spending to development
and infrastructure, up from 25
per cent. He will pay for his propoor agenda, he says, by cutting
current expenditure, purging the
government of extravagance - even
the serving of tea and coffee in

offices has been banned - and
squeezing more revenue from
private companies and high-flying
elites.
"All over the world, people speak
about Magufuli," says Othman
Gendaiki, 76, lowering himself stiffly
on to a stone step by the side of an
open sewer in Msasani, a Dar es
Salaam neighbourhood. "To break
the chains of poverty. That's what
he's trying to do."
Many Tanzanians have been left out
of an economic boom that has seen
All over the world, people speak about

Magufuli ...To break the chains of
poverty. That's what he's trying to do.
the economy, according to official
statistics, grow at an average of 7 per
cent for 15 years. That is particularly
true of the countryside, where more
than two-thirds of Tanzanians live,
many in severe poverty. Farming
output has grown only 3 or 4 per
cent a year, barely enough to keep
up with a blistering birth rate, which
could see a population of 55m, the
fourth-largest in sub-Saharan Africa,
double within 30 years.
Mr Magufuli's supporters argue
that he must first use his authority
to take on a system corroded by
corruption and complacency before
he can rebuild institutions. But

even advocates worry about his
tendencies to run government by
fiat and to take snap decisions
without, they say, thinking through
the consequences.
A crackdown on illicit sugar imports
has led to shortages. Last week, his
government demanded, with no
consultation, that foreign-owned
telecoms companies list on the
local stock exchange within six
months. One lawyer accused the
president of hypocrisy, saying he
talked about fighting corruption
while encouraging the police to
steal the tyres off illegally parked
vehicles.
Naturally, Mr Magufuli has made
enemies. In the State House, as a
precaution, he is said to eat only
food prepared by his wife.
"People believe sincerely that there's
a new sheriff in town," says Salim
Ahmed Salim, a former prime
minister. "But I worry. I think at
some point President Magufuli will
have to review his methods. He
cannot be a one-man show."
Back in Msasani, there are few such
reservations. "He's like a soldier,"
says Paulo Shiwala, 40, a hospital
technician. "When you are a soldier
you have to use your tone of voice,
not smiling. When you are smiling,
people are stealing."
He is hopeful the new president will
get the economy working for the
poor and wants to set his wife up
in business. "If God wishes, I can
get a caf for her," he says. "Maybe
if Magufuli can produce a miracle,
then we can get it."
Dubai hotels welcome African

and Chinese middle-class tourists
Judith Evans
ubai is known for taking

hospitality to excess:
the world's tallest hotel,
rooms costing $24,000
a night, replicas of Arabian and
Russian palaces. But developers
in the emirate are turning their
attention to travellers on more
modest budgets in an attempt to
lure the growing middle classes of
China and Africa to shop, trade and
take holidays.
"We are expecting an increase in
that market, a need for more threeand four-star hotels and resorts,"
says Ali Rashid Lootah, chairman
of Nakheel, a state-owned property
company. "Our focus now is on the
more affordable bracket," he adds.
His company opened the first of
10 planned hotels and resorts in
February, a three-star Ibis Styles
hotel linked to Dragon Mart - a
shopping and wholesale centre
which claims to be the largest
Chinese trading hub outside China.
Dragon Mart has proved so popular

that it was extended last year to
more than double its space, and Mr
Lootah plans another hotel there.
Many nationalities visit Dragon
Mart, but the expansion is founded
partly on hopes for a steep increase
in numbers of Chinese visitors, of
whom 450,000 passed through
Dubai in 2015. This was 29 per
cent up on the previous year but far
below the million-plus people who
visited from India, Saudi Arabia and
the UK, according to government

statistics. "We expect Europeans,
Russians and locals from the GCC
[Gulf Cooperation Council] to
continue coming, but we expect
many more Chinese and Africans
to come," Mr Lootah says.
There are ambitious forecasts for
the rise of China's middle class: a
report from the Boston Consulting
Group and AliResearch last year
said China's emerging-middle and
middle classes would grow by 5
per cent a year between 2015 and

2020, while the upper-middle and
"affluent" classes would increase
by 17 per cent a year over the same
period. Meanwhile, according to
Goldman Sachs, only 3 per cent
of Chinese people have passports.
Some 4.1m Nigerians - 11 per
cent of the population - can now
be described as middle class,
according to Standard Bank, a
P ag e 60
Moroccans warm to
the potential of Paris
istorical and
geographical ties have
long made France an
important destination
for Moroccans. A steady stream
of immigrants since Moroccan
independence in 1956 now adds up
to a community of 1.5m in France.
Indeed, the population has tripled
since 1975, according to the French
government.
This has turned Europe's thirdlargest economy into an essential
source of revenue through
remittances. According to the
Banque de France, the country
generated remittances of 9.4bn
in 2014 - more than a third of
which went to Morocco, Algeria
and Tunisia.
But France also lures some of
Morocco's brightest and most
talented youth, who abandon their
country's sluggish economic growth
and lack of a sophisticated business
environment, complete their
education in French universities
and often end up staying. The FT
spoke to four people who fit that
profile and asked them about their
experiences of working in France
and how they compared with home.
Amine Fellahi was born and raised
in Casablanca but now works at
Roland Berger, the consulting firm,
in Paris - a city he likes because of
what he calls the "maturity" of its
professional marketplace.
"There is a lot of structure in France
in terms of working processes," he
says. "In Morocco, it is often hard
even knowing who you should be
talking to." You might have to go
from one person to the next to
discover who holds the data you
need, he says.
Mr Fellahi, who finished his studies
at France's HEC business school
and then Duke University in the US,
says that it is difficult to shake up
deeply ingrained working practices
in his country.
"Things tend to move more slowly
than in France, as the person above
you in an organisation may not
share the motivation of a young
person with a lot of energy, and
may even feel threatened by him
or her. You can hit the glass ceiling
in a large organisation really fast
depending on who is above you."
Sara Kadaoui, a 24-year-old
Moroccan working at a start-up
accelerator in Paris, decided to
live in the French capital mainly

because the city offered her
a more developed business
"ecosystem". "There is a real
political willingness to support
start-ups in Morocco," she
says, but few companies do;
the business environment is "a
work in progress".
Born and raised in Agadir, Ms
Kadaoui returned to Casablanca
after completing her higher
education in France and the US
but she found the jobs market
stiff and relatively conservative.
"In Morocco, the prize for most
people is to be stable whereas
in France it has started to be
considered exciting to be an
entrepreneur and take risks,"
she says.
She also found that promotion

in Morocco is predicated more
on age and experience than on
drive and talent. "To move up
in most companies you have to
have worked there for years.
That can be a real glass ceiling
because, in the digital world,
the youngest people are the
ones who know the most."
She has not turned her back on
her homeland, though. Numa,
where she works, has opened
an office in Morocco with the
idea of supporting local startups. "Numa wants to transfer
the knowledge we gained so
that Casablanca can do the
same thing that we did in Paris."
Mehdi Ghissassi, 33, argues
that one of the advantages of
I've always
wanted to
live in a
place with an
international
feel and where
you can meet
people who
can give
you a wider
perspective on
things ...
working in Paris over returning

to Morocco is diversity and
competition in the workplace.
"Developed countries such as
France attract highly qualified
international talent and that means
an unparalleled opportunity for
personal growth," he says. "I am
very attached to my roots but I
also feel that it's important to be
exposed to what lies beyond."
A second difference, he argues, is
that gender is less of a barrier to
success. "I interact with far more
women in senior positions here in
France than I would back home,"
he says.
The engineer now works at Google
- "there are people here with pink
hair while others walk around
barefoot. I don't think there is any
company like that in Morocco" - but
does not rule out moving back to
Morocco one day.
Apart from friends, family and the
weather, he says that he misses "the
sounds, the colours, the smells".
But he is in no rush to return. "It's
very rewarding to contribute to the
growth of the place you come from.
But you also don't want to miss out
on learning."
Younes Bennai arrived in Paris from
Morocco in 2000 to study and now
has his own company that works
on IT architecture design for some
of France's biggest companies.
The 33-year-old says that he could
probably find opportunities to do
the same in Morocco but likes life
in Paris too much.
"I've always wanted to live in a place
with an international feel and where
you can meet people who can give
you a wider perspective on things,"
he says. "It is much easier to do that
here than in Morocco."
He feels that he can better follow big
themes in geopolitics from Paris.
"Leaders of opinion from the entire
region pass through here," he says.
"There is an intellectual richness
that you just don't have elsewhere."
He says that he misses some things
about his country. Growing up in El
Jadida on Morocco's Atlantic coast,
sun and sea rank high on that list.
But he doubts that he will move
back any time soon. "I am very
pragmatic," he says. "I think about
it and there are many opportunities
but I know it will not happen in the
next five years."
P ag e 61
SOUTHERN AFRICA-CASH CRUNCH
Dollar shortage
highlights
Zimbabwes woes
The queue outside the Harare
branch of CABS bank stretches
to at least 60 people, as
Zimbabweans wait patiently
to withdraw cash amid a
deepening US dollar shortage
in the southern African nation.
If they are lucky, the cash
machine will have notes - many
do not and availability can vary
depending on the time of day.
In nearby shops, retailers warn
that the scarcity of dollars
- the dominant currency
in the import-dependent
nation - will soon start to
show on supermarket shelves.
Authorities this week imposed
restrictions on imports of a
range of goods, from bottled
water to fertilisers and canned
beans, while local businesses
complain of not being able to
pay suppliers.
The currency crisis is indicative
of the dire state of the economy
under the regime of Robert
Mugabe, Zimbabwes veteran
president, which is desperate
to reopen credit lines with the
International Monetary Fund
and the World Bank.
The government had promised
to address the dollar shortage
by printing so-called bond
notes - effectively currency
notes - that are supposed to
have the same value as the
greenback. The announcement
in May effectively meant Harare
was reintroducing its own
currency seven years after it
ditched the Zimbabwe dollar
at a time when the country
was gripped by record levels
of hyperinflation.
But in the weeks since, a series
of confusing and contradictory
statements by officials,
coupled with concerns that
the governments intention is
to use backdoor methods to
reintroduce the Zimbabwe
dollar, has merely exacerbated
economic uncertainty. It is a
spectacular own goal, says
one banker who did not want
to be named.
Zimbabwes central bank
originally said it would
introduce up to $200m of
bond notes backed by a loan
from the African Export-Import
Bank starting from next month.
But their introduction has been
delayed twice, and the central
bank says that only $2m of the
notes will be in circulation by
the end of the year. We are

in classic headless chicken
territory, another banker says.
Zimbabwe has used a
multicurrency system since
2009 after dumping the
Zimbabwe dollar in the wake
of a period of economic chaos
during which the central bank
issued Z$100tn notes that lost
value almost as soon as they
were printed.
The US dollar has dominated
since then, accounting for
more than 90 per cent of
transactions. The South African
rand accounts for about 5 per
cent of transactions.
But the depressed state of the
economy, which has been hit by
political uncertainty - including
over who will succeed the
92-year-old Mr Mugabe,
crippling infrastructure
bottlenecks and drought has triggered the US dollar
shortage.
A vehicle importer says he has
been unable to pay his suppliers
for five weeks and will have to
downsize his operations if
payment conditions are not
eased. Quest Motors, a local
vehicle assembler, says it has
sold just 40 units this year and
is operating at below 1 per cent
of capacity.
Few believe the introduction of
the bond notes will provide the
solution - the notes are derided
on social media as Zimbabwe
dollars that went to private
school.
But Zimbabweans, badly burnt
by the hyperinflation of 200508, fear that in an effort to
ensure it can pay its bills, the
government will de-dollarise
and bring back a local currency.
Another option is to adopt a
different currency, such as the
South African rand. Unless
things change soon, forced
de-dollarisation by September
is a distinct possibility, says a
bank economist.
The government last week
pushed back public servants
June salary payments by three
weeks, as well as pensioners
benefits. With state revenues
12 per cent below budget
expectations in the first
three months of the year,
the government borrowed
Insurers' pledge to help developing

countries on climate change
When powerful earthquakes
rocked New Zealand and Haiti
in 2010, each measuring 7.0
magnitude, very different
dramas unfolded: New Zealand,
though hit hard, was able to start
recovering relatively quickly;
Haiti, meanwhile, was brought
to its knees.
One major reason for
the difference was the role
insurance played in the two
island nations' recoveries.
Whereas most of New Zealand's
earthquake-related damages
were covered by insurance, very
few of Haiti's were.
The lack of insurance for
emerging economies is
becoming more of a problem
as the costs of natural disasters
increase. Exacerbating this risk
are the effects of climate change.
Yet there appears to be a
growing sense of urgency among
policymakers and insurers to
address the problem. Last year
the G7 nations said they would

aim to increase the number of
people in the developing world
insured against the negative
impact of climate change.
Since then, December's Paris
agreement to combat climate
change was signed by nearly
200 countries.
Another initiative is the
Insurance Development Forum,
a collaboration of insurers,
the World Bank and the
United Nations. The IDF aims
to help emerging economies
understand and assess the risks
they face, while increasing their
access to insurance.
"For years the insurance
industry has been very poor at
describing the value proposition
of insurance," says Stephen
Catlin, executive chairman of
the IDF and deputy chairman at
XL Catlin, the insurer. But now
the UN and other agencies "are
starting to understand what we
can do for them", he adds.

One measure of success for
the group would be for "more
people to be covered against
more perils", says Michael
Morrissey, president and chief
executive of the International
Insurance Society, which
supports the IDF.
The IDF's mission, which it
is drawing up, is expected to
include helping many of the V20,
or vulnerable 20 countries. The
members of this group - which
officially formed last October
at a meeting in Lima, Peru,
and which now includes 43
countries - consider themselves
among the most susceptible to
the effects of climate change.
"The aims [of the IDF and the
V20] are fairly well aligned,"
says Matthew McKinnon, project
manager at the United Nations
Development Programme,
which is supporting the V20.
"Everyone recognises that huge
gaps in insurance coverage are

a problem. And they're getting
worse each year."
Finance ministers of the V20
said in a recent statement that
the group is aiming to expand
access among its members
to risk-pooling mechanisms,
which allow groups to share
the burden of catastrophic
risks such as earthquakes and
flooding.
Several V20 countries already
pool risk with each other,
including Haiti, which is a
member of a so-called risk
pool of 16 Caribbean nations.
Haiti received a $7.5m payout
from the pool following the
2010 earthquake. Yet insurance
payouts overall covered less
than 1 per cent of Haiti's
earthquake-related economic
losses, which were $8.5bn,
according to research by Swiss
Africa's insurance market

a 'giant waking up'
John Aglionby - Nairobi
When KPMG, the advisory
company, held its inaugural East
Africa Insurance Conference
in February, organisers were
surprised that more than 100
industry participants attended.
James Norman, KPMG's
regional insurance head, was
equally enthused when a similar
number attended the launch of
a report on the sector last week.
"There's a real buzz about the
sector because opportunities
are immense," he says.
"There's a young population,
a growing middle class - most
with smartphones - and an
increasingly large diaspora
coming back," he says. "There's
a whole new generation of
savvy consumers with
disposable incomes and large
infrastructure projects being
built."
Lukas Mueller, head of north and
sub-Saharan Africa at reinsurer
Swiss Re, is also bullish on
the region, describing it as a
"giant waking up". He says the
opportunities are many and
varied - from infrastructure and
agriculture to catering for the
growing middle class.
"The insurance market is closely
linked to economic growth," he
says. "When incomes rise you

have more insurable assets."
However, he also describes the
sub-Saharan African insurance
market as a "diverse picture".
South Africa accounts for almost
80 per cent of all premiums
in sub-Saharan Africa and
the country has an insurance
penetration rate - the total value
of insurance premiums as a
proportion of GDP - of about
13 per cent, well above the
developed world average. Of the
rest, Kenya is among the most
advanced, with a penetration
rate of 3 per cent. Nigerias, in
comparison, is about 0.3 per
cent, even though it is Africa's
largest economy.
This diversity mirrors the
continent's broader economy.
Commodity exporters, such
as Nigeria and Angola, are
struggling to achieve meaningful
growth, while those nations
with more diversified and
less commodity-dependent
economies - such as Ivory
Coast, Tanzania and Kenya - are
doing much better.
Delphine Maidou, chief
executive of insurer Allianz's
global corporate and speciality
Africa arm, says insurers should
focus on the markets "that

are getting the biggest foreign
direct investment projects" but
that the so-called "laggards"
should not be neglected.
"You've got to stick with them
while diversifying your portfolio
because eventually the cycle will
come back," she says.
Allianz is following her advice.
Last October it opened a
division in Kenya, its 12th subSaharan Africa operation. It
comes a year after Prudential,
the London-based insurer
also started operations in
east Africa's largest economy,
although that was through the
purchase of a local player,
Shield Assurance. In December
2013 Prudential bought Express
Life Insurance in Ghana to enter
that market.
Other deals include South
Africa's MMI Holdings buying
two-thirds of Kenya's Cannon
Assurance last year, which then
merged with Metropolitan Life
Kenya.
Muammar Ismaily, a Nairobibased insurance analyst at
Exotix Frontier Research,
P ag e 62
Dubai hotels . . .
South African bank, although the
country's economic downturn casts
doubt on the report's prediction
that 11.7m people will be in the
middle class by 2030.
Nakheel's plans play into a broader
government strategy of increasing
mid-market hotel availability to
help boost total visitor numbers to
20m a year by 2020. Two years ago
Dubai offered a series of incentives
to developers of three- and fourstar hotels, such as waiving nightly
municipal charges on hotel stays
for a set period and allocating
government land for the projects.
They also tally with attempts by the
ruling al-Maktoum family to forge
closer links with China and subSaharan Africa, and expansion of
flights by the state airline Emirates
to these regions. Sheikh Mohammed
bin Zayed al-Nahyan, crown prince
of Abu Dhabi, visited Beijing in
late 2015, while a string of African
heads of state including the leaders
of South Africa and Nigeria have
visited the emirate this year.
However, the new tourism push
comes as growth in the supply of
hotels is outstripping demand:
despite a 7.8 per cent year-on-year
increase in visitor numbers in 2015,
occupancy declined by 1.4 per
cent to an average 77.5 per cent,
according to Deloitte. Revenues per
available room, a commonly used
metric, dropped 8.7 per cent.
The professional services firm
says another 31 hotels due for
completion this year mean that the
gap between supply and demand
will widen further in 2016 and
2017. But it expects visitor numbers
to increase again in the run-up to
Dubai's hosting of Expo 2020, a
world's fair last held in Milan in
2015.
Murray Strang, head of Dubai at
Cluttons, the property advisers,
echoes these concerns. "At most
levels the hospitality market is
pretty well supplied, and there are
three years to go until the expo,"
he says.
Dubai - which is a seven to eight
hour flight from Beijing and about
the same from Lagos - is working
to increase awareness in target
markets. Its tourism bureau this
year carried out a roadshow in
three Nigerian cities, seeking to
raise its profile in its biggest African
source of customers.
Hotels have focused on adapting to
the Chinese market in particular.
InterContinental Hotels Group
(IHG) last year introduced a "China
Ready" status, a certification it
gives to its hotels that fulfil criteria
including Mandarin-speaking staff,
acceptance of Chinese bank cards
and Chinese tea for guests. Six of its
We are expecting an
increase in that market,
a need for more threeand four-star hotels and
resorts ... Our focus now
is on the more affordable
bracket...
Dubai hotels have the status. IHG

says Chinese visitors have spent 70
per cent more nights in its Dubai
hotels in 2016 than in the same
period last year, but "guests from
Africa seem to have marginally
reduced their bookings".
Andrew Sangster, editor of industry
publication Hotel Analyst, says that
Dubai has so far defied fears that it
might suffer from hotel oversupply,
partly thanks to tourists travelling
there instead of to destinations
such as Egypt and Tunisia, where
they feared further terror attacks.
But he says he is concerned that the

preparations for Expo 2020 could
lead to "unviable projects getting
the green light".
"All of history shows that when you
have a one-off event such as the
Olympics, people get bamboozled
by the prospect of a short-term blip.
You get classic overbuilding."
Mr Sangster says Dubai will also
face a delicate balancing act in
attracting middle-class guests
alongside the existing stream of
wealthy visitors who like the city's
sense of exclusivity.
Africa's insurance . . .
expects there to be much more
consolidation, particularly in
east Africa. "There are dozens of
players, but only a handful control
the majority of the market," he says.
"And with new capital adequacy
rules coming in Kenya in 2018,
many companies are going to have
to merge or be taken over if they
want to survive."
The new rules in Kenya, which
come into effect in 2018, are part of

what analysts say is a growing trend
of improving regulation, albeit from
a low base and with a need for firmer
enforcement.
One example of this need for tougher
enforcement is the extent of fraud
in the market. KPMG's Mr Norman
estimates premiums in sub-Saharan
Africa would, on average, be 20 per
cent lower if it were not for fraud.
Re. Meanwhile, damages in New

Zealand from its 2010 earthquake
and two more in 2011 totalled
$31bn, of which insurance covered
around 80 per cent.
This gap between economic and
insured losses - called the protection
gap - is a major determining factor
of how well a country recovers from
a natural disaster. The gap is much
wider among emerging economies
where insurance penetration is low.
According to Swiss Re, so-called
insurance penetration - a measure
of premiums as a proportion of
GDP - in Europe was 6.8 per cent in
2014, compared to 3.8 per cent in
Africa. In Nigeria this number was
just 0.3 per cent.
Natural disasters have become
riskier for these countries as
their populations and economic
development have increased.
"When things hit, they're hitting
a higher concentration of value,"
says Martyn Parker, chairman of the
global partnerships unit at Swiss Re.
Changing weather patterns and
rising sea levels due to climate
change are only making matters
worse.
Swiss Re, whose incoming chief
executive Christian Mumenthaler
is a member of the IDF steering
committee, has been working
with governments to address the
low insurance penetration among
emerging economies for several

years. The company helped create the
Caribbean risk pooling scheme as well
as similar schemes in Africa and among
Pacific Island nations.
Drawing on this experience, Mr Parker
says initiatives such as the IDF could
face several hurdles, including a lack
of awareness in emerging economies
about what the insurance industry
can do or even regulatory restrictions
against purchasing insurance. But the
prospect of opening up new markets
will probably be enough to motivate

insurers to continue their efforts.
"I'm not going to pretend for one
second that the industry's not looking
for growth," says Mr Catlin, adding
that governments and development
agencies increasingly acknowledge
that the industry can find new business
opportunities while at the same time
"delivering a societal need more
cheaply than a government can".
Dollar shortage . . .
$245m - about 1.7 per cent of gross
domestic product - in Treasury bills.
It needs to raise at least another
$600m during 2016.
In a bid to manage the US dollar
scarcity, the authorities are
promoting the use of debit and
credit cards, while encouraging
households and companies to use
other currencies, notably the rand.
Through currency and import
controls, it is also prioritising the
allocation of dollars to four sectors.
But the priorities have already been
reshuffled in response to political
pressure, with foreign payments
for education elevated to priority
one. That followed demands by
heavyweights in the ruling Zanu-PF
Part of the reason for the fraud, he

believes, is insurance companies'
failure to innovate in controlling costs,
keeping tabs on their agents and, most
importantly, getting to know their
customers.
"There's a trust deficit gap - people
don't buy insurance because they
don't trust the providers," Mr Norman
says. "They don't think the promise
[that a claim will be paid] is going
Insurers' pledge to . . .
Mr Lootah brushes off concerns

that the hotel market could find
itself in oversupply. He says that
if even a small additional fraction
of those who already pass through
Dubai en route to elsewhere can
be persuaded to spend time in the
emirate, that will support growth
in visitor numbers. Last year 78m
people passed through Dubai
International, the airport's operator
says, the highest number in the
world for the second year running.
"Even after the end of the expo,
there will be more visitors. It will
raise our profile, raise people's
knowledge of Dubai," says Mr
Lootah. "The growth of Dubai will
continue - and we will still have a
shortage of hotel rooms."
party whose children are educated

abroad. Bankers say it is a worrying
indication that the priorities will be
revised randomly even as companies
face closures.
And while nine currencies are legal
tender under the multicurrency
system, in practical terms
Zimbabweans are dependent on
US dollars.
The government wants me to buy
food with Chinese and Japanese
cash, says an attendant at a filling
station battling unsuccessfully to get
a point-of-sale machine to accept a
Visa card. Both currencies are legal
tender in Zimbabwe. Where do I
get that money?
to be delivered. Claims are not

paid quickly, fairly or correctly.
It's a huge pain point across the
continent."
There are some signs of innovation.
Nigeria, for example, is starting to
see the first price comparison sites,
such as Topcheck. Meanwhile,
Ms Maidou says Allianz is seeing
high demand for its recently
created cyber insurance products.
Another innovation, she suggests,
is greater use of technology - for
example, using satellites to assess
agricultural claims - which is
expected to become increasingly
important for the industry as large
scale commercial agriculture
takes off. "Do you need to go to a
field in a country where you don't
have an office when a satellite can
do the job for you?" she asks.
However, it is at the other end of
the market, in microinsurance,
where the greatest innovation
and disruption is emerging.
Katerina Kyrili, head of African
business development at Bima,
which distributes and manages
microinsurance payments
in 25 developing countries,
says insurance is not just for
the relatively wealthy. She says
this is indicated by Bima's 23m
customers, 40 per cent of whom
are in sub-Saharan Africa and 60
per cent living on less than $2.50
a day.
Offering life insurance for
premiums as low as $0.50 a
month - for a potential payout
of $4,500 - Ms Kyrili says Bima
provides products that are easy
to understand, such as offering
cash for medical bills rather than
blanket payments.
"Our view is the solution is all
about product design," she says.
"It's not just about affordability but
an experience that's accessible,
simple enough to communicate
and won't create confusion but
create incentives."
P ag e 63
ECONOMIC AND INVESTMENT INDICATORS
ECONOMY BY GRAPH
Exchange Rates
for Transactions
For the procurement of Forklift
Maintenance Service (RFQ No. 3530002).
Ethio telecom. Address: P. O. Box 1047,
Addis Abeba. www.ethiotelecom.et. Closing
date: July 18, 2016. Publication: The
Ethiopian Herald, June 21, 2016.
For the procurement of 1. Curtain Light,
2. Curtain Heavy, 3. Carpet. Ethio telecom.
Address: P. O. Box 1047, Addis Abeba.
www.ethiotelecom.et. Closing date: July 18,
2016. Publication: The Ethiopian Herald,
June 24, 2016.
For the procurement of 1. Optical Meter
and Light source (Paired), 2. Optical Fibre
Visual Fault Locator (Red Light Detector),
3. Transmission system maintenance tool
kits, 4. Antenna System maintenance tool
kits with RFQ No. 3449013-2 and34490252-3449017-2. Ethio telecom. Address: P. O.
Box 1047, Addis Abeba. www.ethiotelecom.
et. Closing date: July 19, 2016. Publication:
The Ethiopian Herald, June 14, 2016.
For the supply of Explosive. The Ethiopian
Constructive Works Corporation Transport
Infrastructure Construction. Tel. 0115538171. Closing date: July 19, 2016.
Publication: The Ethiopian Herald, June
21, 2016.
For the supply of Explosive. The Ethiopian
Constructive Works Corporation Transport
Infrastructure Construction. Tel. 0115538171. Closing date: July 19, 2016.
21, 2016.
For the supply and delivery of Lot 1. Server
computers, Lot 2. A3 Flat bed scanner,
Lot 3. Automatic optical level. Ministry
of Agriculture & Natural Resources
Sustainable Land Management Project.
Tel. +251 11 646 13 00/011 646-12 42/09
11-19 36 10. Closing date: July 20, 2016.
21, 2016.
For the supply of Wire Bending Machine.
The Ethiopian Crown Cork & Can Mfg. Ind.
S. Co. Tel. 011-4 39 03 56. Closing date:
July 21, 2016. Publication: The Ethiopian

Herald, June 21, 2016.
For the supply of different types of
laboratory equipment and reagent. National
Alcohol & Liquor Factory. Tel. 0115516999,0115-517937. Closing date: July
21, 2016. Publication: The Ethiopian
For the supply of 5 Mobile Calibration
Units or Testing Units for Automatic
Weather Stations in Addis Abeba. National
Meteorology Agency. Tel. 251-11-6615779.
Closing date: July 21, 2016. Publication:
The Ethiopian Herald, June 19, 2016.
For the procurement of Lot 1: 1. GSM/3G,
2. Unified Data Terminal that supports GPS,
3G and Wi-Fi, 3. Fleet Management System
Software. FDRE Central Statistics Agency.
Tel. 091 167 70 84. Closing date: July 22,
2016. Publication: The Ethiopian Herald,
June 23, 2016.
For the procurement of Training in Telecom
Network Costing Model, Telecoms Market
Analysis & Evaluation, and Investment &
Business Appraisal in Telecoms Sector,
Tender No. (RFQ No. 3466002-2). Ethio
telecom. Address: P. O. Box 1047, Addis
Abeba. www.ethiotelecom.et. Closing date:
July 27, 2016. Publication: The Ethiopian
For the supply of Lot 1. Biology Lab
Apparatus, Lot 2. Physics Lab Equipment,
Lot 3A. Chemistry Lab Accessories
& Apparatus, Lot 3B. Chemistry Lab
Glassware/Plasticware, Lot 3C. Chemistry
Lab Instruments. The Public Procurement
& Property Disposal Service on behalf
of the Ministry of Education. Tel. 011-1540524/011-1-223722. Closing date: July
25, 2016. Publication: The Ethiopian
For the supply of Size Coal. The Ethiopian
Petroleum Supply Enterprise. Tel. +251
11 551 32 88/+251 11 551 00 45. Closing
date: July 26, 2016. Publication: The
Ethiopian Herald, June 19, 2016.
Currency
Buying
Selling
US Dollar
21.8081
22.2443
Pound Sterling
28.9699
29.5560
Euro
24.2811
24.7779
Swiss Franc
22.4133
22.8485
Swedish Kroner
2.5843
2.6362
Norwegian Kroner
2.6111
2.6632
Danish Kroner
3.2648
3.3273
Djibouti Franc
0.1225
0.1264
Japanese Yen
0.2124
0.2167
Canadian Dollar
16.8760
17.2014
Indian Rupee
0.3239
0.3302
Kenyan Shilling
0.2154
0.2200
Australian Dollar
16.3125
16.6246
SPECIAL DRAWING
30.5313
31.1114
South African Rand
1.4956
1.5253
Chinese Yuan
3.3074
3.3732
Source: Trading Economics
Exchange Rates
for Cash Notes
Currency
Buying
Selling
US Dollar
21.8081
22.2443
Pound Sterling
28.9699
29.5560
Euro
24.2811
24.7779
Swiss Frank
22.4133
22.8709
Swedish Kroner
2.5843
2.6388
Norwegian Kroner
2.6111
2.6658
Danish Kroner
3.2648
3.3306
Djibouti Franc
0.1225
0.1265
Japanese Yen
0.2124
0.2167
Canadian Dollar
16.8780
17.2183
Saudi Riyal
5.8139
5.9309
UAE Dirham
5.9369
6.0568
Central Africa Franc
0.0120
0.0122
Birr is expressed in terms of one unit of

each foreign currency applicable on
June23,2016 Source: Commercial Bank of
Ethiopia.
Last updated on -Jun-2016

Location
Vessel
Voyage
Latest
position
Latest
position
Date
Expected
Position
Expected
Arrival
Date
Destional
AFRICA
SEA
PORTS
SERVICES
GLOBAL
STANDARD
08WB
At
Djibouti
14 Apr
ETB
Reverting
Chartered
Vessel
AFRICA
SEA
PORTS
SERVICES
M/V
Golden
Eagle
At
Richards
Bay
03 Jun
ETC
Richards
Ba
06 Jun-
Chartered
Vessel
AFRICA
SEA
PORTS
SERVICES
M/V
PETRE
At Sea
ETA
Djibouti
10 Jun
Chartered
Vessel
FAR EAST
PORTS
SERVICES
M/V
TRANSTIME
At
Djibout
04 Jun
ETC
Djibout
21 Jun-
Chartered
Vessel
BLACK
SEA
PORTS
SERVICES
Gambella
23 SB
At
Djibouti
28 May
ETB
Reverting
BLACK
SEA
PORTS
SERVICES
M/V New
Venture
01
At
Djibouti
09 May
ETB
Reverting
Chartered
Vessel
BLACK
SEA
PORTS
SERVICES
Mekele
16 NB
At
Aliaga
ETB
Aliaga
Reverting
Charter
FAR EAST
PORTS
SERVICES
Assosa
13 EB
At
Shanghai
27 May
ETD
Shangha
06 Jun
FAR EAST
PORTS
SERVICES
Assosa
13 EB
At
Shanghai
27 May
ETA
Tianjin
08 Jun-
Business Calender 2015
ECX
Please send us your events for next week

by email to theweekahead@addisfortune.
com. We will print your information in this
corner of our publication for free.
Use the opportunity to promote
your big events.
Destional
Arrival
Date
Source: Ethiopian Shipping Lines.
Benchmark Currency Rates

CURRENCY
VALUE
EUR-USD
1.1108
-0.0017
-0.15%
GBP-USD
1.3439
0.0010
-0.37%
USD-JPY
102.6400
-0.1900
+0.07%
AUD-USD
0.7431
-0.0020
-0.27%
USD-CAD
1.2963
USD-CHF
0.9804
19Jul-21 2016
DistribuTECH Africa-Exhibition
and Conference for Transmission
and Distribution - Information,
Technologies, Trends
Johannesburg,
South Africa
Business sectors: Energy
Business sectors: Cosmetics, Perfumery,
% CHANGE
0.0028
+0.22%
0.0007
+0.07%
Source: www.bloomberg.com.
his chart displays the exchange rates of eight major world currencies. Scan
across the chart to find the rate of exchange between any two of the currencies.
June30, 2016
18Jul-21 2016
Cosmobeaut Asia-Malaysia
International Exhibition and
Conference on Cosmetics, Beauty and
Spa
CHANGE
Kuala Lumpur,
Malaysia
Hairdressing
08Jul-10 2016
TTF Kolkata-Travel and Tourism Fair
Kolkata, India
Business sectors: Tourism
Last updated on, June30, 2016.
Always tell yourself: the difference between running a

business and ruining a business is.
i. Frank Tyger.
International Hard and Soft Commodity Prices

COMMODITY
GRAINS
Coffee 'C' Future (Usd/Lb.)
Corn Future (Usd/Bu.)
Soybean Future (Usd/Bu)
Wheat Future (Cbt) (Usd/Bu)
LIVESTOCK
Live Cattle Future (Usd/Lb)
MINERALS
Gold 100Oz Future Usd/T Oz)
SOFTS
Sugar No. 11 (World) (Usd/Lb)
INDUSTRIALS
Cotton No. Two Future (Usd/Lb)
Price
Change
% Change
5
5
5
5
146.40
430.25
1,137.50
430.25
+0.75
-15.25
-15.75
-15.25
+0.51%
-3.42%
-1.37%
-3.42%
112.98
-1.85
-1.61%
1,341.35
+19.45
+1.47%
20.78
+0.45
+2.21%
221.70
+2.15
+0.98%
These international commodity prices are indicative of future prices as speculated by market analysts.
They are, therefore, subject to change. They are in US dollars, and the prices recorded are those of
June 24, 2016.
P ag e 64
LEISURE
PART SEVEN
DISCLOSURE OF INFORMATION
AND INSPECTION OF BANKS
29. Inspection of Banks

2/ Where an application, accompanied with
supporting evidence, is made to the National

Bank by one-fifth of the total number of depositors
or by any number of depositors holding not less
than one-third of the deposits of a bank, the
National Bank shall examine, or cause to be
examined, under conditions of secrecy, the affairs
of the bank in order to determine whether it is
in a sound condition and the provisions of this
Proclamation and regulations and directives
issued pursuant to this Proclamation have been
complied with.
Virgo
Aries
Coordinate with your colleagues for maximum
Those in sales and marketing may feel a strong urge to go
efficiency at work. You will not only be busy with
for a different kind of work. This week will help prepare
your current projects but will have a lot of new work
you for this. Efforts you make towards your goal will bring you
coming your way. Make sure you meet all your deadlines this
fulfillment and the self-employed will find their work/business
week, as any delays in this regard could create problems for
enhanced. The effort you put in this week will be the deciding you. Keep your priorities right to avoid any confusion.
factor for, and directly proportional to, your growth.
Libra
Taurus
This week, your career graph moves ahead at a much
You are likely to be given an important assignment
faster pace. An unexpected interview call lifts the spirit
with strict deadlines. This will test your dedication, of those wanting to change their jobs. Be confident and prepare
especially mid-week. This is the perfect time for you move your yourself well in advance for the interview. Avoid making silly
career forward. Your seniors will appreciate your hard work and mistakes. This new opportunity will have better perks and satisfy
you may also get promoted to a much higher position that will your desire to do something challenging.
allow you to experiment and take some risks at work.
Scorpio
Gemini
This week some unusual & challenging situations are
This week you will be experiencing some positive
indicated at your workplace. Your self-confidence and
changes in your life. You will see growth in your career. presence of mind help you come out of this situation without
New contacts you made in the past few days will prove beneficial to difficulty. Some great overseas opportunities are indicated
you. You will receive promotions and perks. For those in business, especially towards the middle of the week. You will climb up
they will be able to clinch deals that have been pending for so the professional ladder at a much faster pace.
long. Any work-related issue work will be resolved.
Sagittarius
Cancer
This will be a good week for those applying for
Proving your point probably is not the way to win over
the post of flight attendant or other airline crew.
others this week. They might nod in agreement, privately Medical professionals will find good job opportunities within
hoping that leave them alone. Everyone wants to believe that they the government. There will be offers aplenty this week for IT
have a choice so skip `hard sell` tactics and opt for something professionals to work abroad. Remember to be clear about
thought-provoking that connects with the person you are working your professional priorities this week. Look forward to the
with. Be confident, not pushy.
great week ahead.
Leo
Capricorn
This week you may have to face some hurdles with your
This is a very good week on the career front, as you
new assignments and meeting deadlines may become
will deal with work pressure much better at this
a tough task. You will have to work in coordination
time. Interesting work proposals are likely to turn up, especially
towards the middle of the week. This weekend is particularly with your colleagues to get your work done on time. Do not be
good for writers and those in the communication field. Business stressed and try your best to calmly resolve these problems. Your
seniors will be helpful and will guide you in the right direction.
professionals may expect good offers from abroad.
Aquarius
A great week lies ahead of you on the career front.
For artists and designers, this may be one of the best
periods of your life. You are likely to get recognition
and a raise in your income for the great work you have been
doing. Others finally appreciate your dedication to your work
this week. Great new opportunities are likely to be knocking
at your door.
Pisces
The week commences with a few challenges at the work
place. The period can be somewhat tough for you as it
may be creating possibilities of loss and distrust. This week also
brings delays and postponements but free yourself and discover
new things. Explore your creative side to bring out new ideas
to deal with the situations occurring in the week.
Test 1
Which numbers is the odd one out?
3628,2426,4146,1448
Answers from last week:
Test 2
post-:MACRO
LATE
LANGUAGE
SMALL
LARGE
LAST
Test 1
Test 3
Which numbers is the oddone out?
684
366
258
891
479
146
7-(2x6)+(8/2)+3
7-(12+4+3=2
each numbers
represents the
Test 2 numbers of
lettersin each
word of the
question
Test 3 MONTGOMERY
Answers next week...
As you journey through life, take a moment every now

and then to think about others as they could well be
plotting something.
Talk is cheap because supply exceeds demand.
Public Health Concerns . . .

packaging and plastic inputs used for
the plastic bottles.
Her institution, endowed with
a mandate of serving as a referral
medical laboratory, has done a series
of research pieces on the quality of
water content, but never managed to
do a single study on the plastic bottles.
Finance is a huge limitation, we lack
the technology required, Tsigereda
said. There are a list of priorities the
Institute has to grapple with."
She never underestimates, however, the
great impact and danger the pack might
cause to the composition.
Nobody has raised any questions,
nor set any standards on what kind
of plastic materials we use, Tesfaye
Temesgen, general manager of Agmas,
told Fortune.
This is a company that came into the
business one year back.
Agmas Manufacturing Plc, the bottler
of Agmas Water, imports the polyresin
raw material from China and processes
the bottles at its plant in Ayer Tena, west
of Addis. Agmas uses a PET category
bottle, which is not reusable.
"We just bought the raw material from
the international market by looking into
prices," said Tesfaye.
The company, which started production
last year, distributes its water in 0.6lt
and 1.2lt bottles to 20 major towns
outside the capital.
Once a bottler has been being declared
fit, that should not be the last of it.
The Ministrys standards requirement
demands that each bottler should do
a thorough quality check quarterly out

of its own pocket.
Yes, we are set to do the standards
check, the expert at the Standards
Agency said. Most of the time, it is the
companies, which bear the burden of
the cost, that are reluctant.
One round of standards checks costs
35,000 Br to 40,000 Br for each visit.
The ozone concentration levels injected
into the bottles depends on the quality of
ozone generating machines, according
to Ashenafi Ambaw, Quality Control &
Food Safety supervisor at Moha.
"The ones from China and Europe
are vastly different in standard," he
explains.
Moha has its own mineral water
bottling plant in Addis Abebas Summit
area. The company entered the market
with its brand name, "Kool Water" back
in 2004. At the moment, the company
is exclusively supplying the Sheraton
Addis Hotel and Ethiopian Airlines. It
has the capacity of producing up to
14,000lt a day.
The company received the last
certificate to be processed by the ECAE,
in 2015. However, its plastic bottled
water does not have the logo of the
Standards Agency on it.
"This is mainly because of the
insufficient stock of plastic labels,
where the logo is printed on them,"
said Ashenafi.
Regarding the follow-up surveillance,
conducted three-month intervals, Moha
seems to be in trouble, with the ECAE
deciding to snatch away its original
The basic and mandatory

quality standards of
bottled water are still not
fully accepted by industry
players, and also not
exhaustively enforced by
the implementers.
quality certificate.
Another player in the market, Dasani - a
product of East African Bottlers - has
been temporarily banned from market
too.
"During the third surveillance, we
were told by Moha that they are not
producing the water and we could
not take and test the samples," an
expert from the ECAE told Fortune.
According to our mandate, if they say
they have stopped producing the water
then they have to give the certificates
back to us," the expert added.
Article of the Directive of the Ethiopian
National Standards, states that if the

user (bottler) fails to provide the
necessary information and samples to
an authorised inspector, it will have its
licence revoked.
In this respect, the Enterprise has
snatched the certificate from Dasani
Water. The water came into the
Ethiopian market as a brand of CocaCola in 2014. It is a globally known
brand, with a presence in 34 countries.
The company was reported to have
invested close to 30 million dollars to
bring the product to Ethiopia's market.
Aside from the packaging, labelling
and content of the water being bottled,
dedicated public institutions seem
to lack both the preparedness and
institutional framework required to
assess the conformity of the plastic
bottles being used to pack the water.
The usual trend is that almost all the
bottlers use what is called polyethylene
terephthalate (PET) category one,
which cannot be reused.
Even if there are standards for such
food grade materials, none of the above
institutions have any kind of quality
check to confirm that they conform
with these standards. The standards
have listed a number of chemicals
used to compose these PETs, with
their acceptable levels or a minimum
amount additive to be used.
"We don't do testing on this material,"
said Tekea Berhane, corporate
communications & service head at
the ECAE.
Quality audits were supposed to have
been conducted by the FMHACA on
P ag e 65
the producer of the plastic bottles or

semi-processed bottles, said Ashenafi.
His company, Moha, use semiprocessed bottles from the local Pepsi
International accredited company,
Roha Pack, as well as plastic cups
sourced from Greece.
The basic and mandatory quality
standards of bottled water are still
not fully accepted by industry players,
and also not exhaustively enforced
by the implementers. Indeed, some
of them are only at the early stage of
being understood by both parties.
The Ethiopian Standard Agency is now
conducting a study to identify which of
the standards are being implemented
and which are not.
Not only that, the EPHI has conducted
no study on this due to the fact that the
required technology to do the testing
is not available.
No one knows if these plastics meet
the standards or not, said Tsegerda.
The PET 1 category is commonly used
to package cosmetics, water, juice, soft
drink and oil. The plastic has to be
transparent and non-reusable. Category
two, on the other hand, commonly
known as high-density polyethylene,
are used for things such as cosmetics
and detergents. The categories go up to
seven, with softness and hardness levels
also associated.
Consumer protection has not received
any complaints so far; though it has
never given any awareness on issues to
its constituency - the consumers.
It is simply compiling the data from the
ECAE, and never cross-checking with
other certifying agencies, including
the FMHACA.
P ag e 66
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Eid Mubarak

Volume 17 No. 844, SUNDAY, July 3, 2016

Number of water producing

Number of water producing

Per capita consumption of bottled water

Price of tap water per litre

Annual Bottled Water Production (in million hectolitres)

Gross Value Production ( in millions Br)

bottled water Concerns

Ermias T. Amelga breaks his silence with apology

Dashen (93.6m Br)

BoA (73.6m Br)

Nib (78.05m Br)

United (70.2m Br)

AIB (93.4m Br)

LIB (32.9m Br)

BIB (38.2m Br)

Established in May 2000.

Volume 17, Number 844

Almost as if hedging its bets, government has three contending

Cognitive computing refers to developments in artificial

Public Health Concerns in

Commercial Information Agency Plc

Photo: Fortune File

Bottled water testing laboratories inside Ethiopian Conformity Assessment Enterprise.

ith the changing lifestyle

Just a year after a 246

Though it is difficult to clearly identify

She never said what gave her the

and competitive points among those

VIEW FROM ARADA

Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016

Photo: Fortune File

In Ethiopia, bottled water is among

Plastic bottles are seen packed for recycling process.

and, in the case of any defects, enforces

entering the bottled water sector must

Invitation for Leadership Skills for Women Training

major preconditions required to earn

Coffee (Arabica) $/kg

which are unobjectionable, according

Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016

Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016

Hawassa Industrial Park's

Upon completion, the park is

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Newayekirstos Gebreab Gets Japan's Highest Civilian Award

ERA to Build 130km Adama-Awash Expressway

Billion Birr Money Laundering Case

requires much more time to compile

It is two years since

The general claim of the defence was

the manufacturing sector, with the

Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016

Ermias T. Amelga breaks

individuals, he calls them in

opting to follow from a

Fo rt u n e Vo l . 17 No. 844 J u ly . 3, 2016

EEP kicks off Two Hydropower

prequalified bidders was made available

and the Upper Dabus dam, exported to

while 870,000 Kenyan households will

prequalification application will end on

Sugar Import Continues with 140,000mt on the Way