Armed with New Procedure, Agency Procures Rash of Medical Equipment

The state pharmaceuticals and medical equipment supplier has received the second batch of medical equipment it procured from America and Switzerland under the new procurement arrangement.

Procured from the Swiss company Roche Holding AG and Beckman Coulter Inc, an American company, the glucometer, haematology and chemistry testing machines were delivered to the Pharmaceuticals Supply Agency last month. The two companies supplied 33 units of chemistry and haematology equipment and 285 glucometers.

This year the Pharmaceuticals Supply Agency has switched to a framework procurement arrangement, which enables the Agency to buy items once and be supplied for three years.

The former arrangement did not permit the Agency to make more than one purchase from one company, forcing the Agency to wait until the next budget year to buy new equipment and their reagents.

The Agency also started a placement procurement arrangement, wherein the companies will be supplying the equipment for free, but the Agency is obligated to buy the reagents only from that supplier.

The Agency, through its previous arrangment, had trouble getting a consistent supply of chemical reagents from the company that laboratory testing machines were purchased from, according to Adna Berhe, communications director at the Agency.

“This resulted in low efficiency in providing laboratory services and was not cost-effective,” Adna said.

Under the new arrangement, the Agency will get a consistent supply of reagents for the testing machines and maintenance service for three years.

During the delivery of the first procurement under the framework agreement made in April, the Agency received 285 glucometers and 16 haematology and chemistry machines.

Thirty glucometers were supplied to Black Lion and St. Paulos hospitals in the capital, while the other 16 hospitals in the city received haematology and chemistry testing machines. The installation of the machines at these hospitals is already completed.

Gonder, Jimma and Ayder referral hospitals are among the hospitals that received haematology and chemistry machines.

The equipment was distributed to the hospitals based on quotas allocated by the Minister of Health, which in turn were based on the nature of treatments they give and the number of patients they serve, according to Goitom Giger, deputy director of the Agency.

The Agency also ordered an additional 66 lower haematology testing machines, which will be delivered at the end of this month, according to the statement from the Agency.

Two months ago Black Lion Specialised Hospital inaugurated the installation of two new pieces of medical laboratory equipment supplied by Beckman Coulter for two million dollars. The laboratories are equipped with a capacity of performing 1,600 tests an hour. Delta Instrument Technology, a local agent of Beckman, will provide training services to workers and maintain the equipment and supply the reagents.

Maximizing the number of these machines is helpful to ensure access to timely, acceptable and affordable health care, according to Getenet Yimer (MD),  a clinical pharmacologist.

“It is recommended that everyone has testing machines like glucometers at home,” said Getenet. “Because of a shortage of simple reagent, patients were forced to wait until it was purchased.”

First established in 1947 with 80 million Br, the Agency got its current name at the beginning of 2019. It operates with 21 branches, two of which are in the capital.

Currently, the Agency has 2,535 permanent employees and 314 contract employees. It supplies pharmaceuticals, chemical reagents, medical supplies and equipment to over 4,000 health facilities nationwide. It has 200 cars, out of which 190 are equipped with Global Positioning Systems (GPS).

Youth Cut Old Trees Down to Build Park

Long-standing trees behind the European Union Delegation Office located on Cape Verde Street have been cleared to open space for a new public park to be built by an organised youth group at an estimated cost of 150 million Br.

The clearing process, which started last Monday, August 12, 2019, has cut down 225 trees on the estimated area of 16,480Sqm of land and was almost over by the end of the week.

The new park, which will be built by Musse Biruk & Their Friends Entertainment & Greenery Development General Partnership, will consist of a library, a café, shops, a swimming pool, a fish pond, kids playgrounds, a gym and a cinema.

A letter that was signed on August 9, 2019, by Assemi Assefa, commissioner of Addis Abeba City Government Environmental Protection & Commission, permitted the youth to cut the trees down and sell the wood.

The decision to cut the trees came after the area was allocated to the youth by Deputy Mayor Takele Uma, according to the letter. The letter also states that the area was given to the youth to be used as a means of job creation and that it was designated to be a green park.

The idea of constructing the park was first raised around two months ago when the Deputy Mayor, together with other city officials, were taking a tour of the city, identifying possible locations for the tree planting campaign.

The cleared area, which is located on a dead-end root bordered by Kebena River, is uninhabited and was one of the sites the City Administration was considering for the tree planting campaign.

“When the Deputy Mayor came to the area, he sat down with us to talk, and we explained our situation,” said Musse Moges, general manager of the youth group that will build the park.

Takele allowed the youth to utilise the land for income-generating activity. Then the youth formed an association with 23 members and came up with their design for a park.

“Since the area is at the heart of the city,” said Mussie, “we decided to make the best use of it and came up with the idea to turn it into a public park.”

The group expects for the title deed of the land to be transferred to them in the next two weeks and plans to secure a loan from one of the banks.

The clearing of the area was met with a backlash by some on social media who pointed out the irony of cutting trees down after the government is campaigning to plant four billion trees this summer.

“This is in contradiction to the Green Legacy initiative,” tweeted Sheimelis Araya, “after spending that amount of money to plant millions of seedlings, will they face a similar fate in the coming years?”

But the youth group believes that the backlash was the result of the public not knowing the details of the project.

“The place currently serves as a dumping site,” said Musse. “Besides, all the trees are non-native eucalyptus trees and were on the verge of collapsing.”

The people living around the area are also supportive of the project.

The area has long been deserted, and the community is behind them, said Cheru Zewdie, a resident in the area.

Located behind Kebena River, the project also falls under the 29-billion-Br River Revitalization Project that hopes to clean the riverbeds and riverbanks across Addis Abeba.

Experts in the area point out the potential of the project rather than the loss of trees.

Clearing the area falls under the objective of landscape management and renovation, according to Amare Bantider (PhD), a lecturer at Addis Abeba University’s College of Development Studies.

He believes the city should use its land to the maximum capacity while continuing to sustain the greening actives.

“As the land was occupied by non-indigenous trees the new park can be used to plant more indigenous ones,” he said.

However, Amare fears that limitations in knowledge and technical capacity of the youth in executing such a huge project might be challenging.

“The youth should partner with urban landscape professionals before commencing the project,” Amare suggested.

Saving the Ailing Ethiopian Economy

Responding to questions in parliament following the 2007 global financial crisis, the late Prime Minister Meles Zenawi argued that the crisis would not have drastic repercussions on Ethiopia, because its financial system was not liberalised and integrated into the global system. “Our boat is not yet in the oceans where the big ships are colliding. Ours is a small boat, and it is somewhere in the rivers,” he added humorously.

The “small boat” is now being undocked and is about to set sail to the oceans. The ruling party, EPRDF, is working toward privatising major state-owned enterprises, including Ethio telecom, Ethiopian Electric Power and Ethiopian Airlines, and liberalising the domestic financial market.

Despite rapid economic growth that lasted more than a decade, Ethiopia has been grappling with several challenges in recent years. Falling exports, chronic foreign currency shortages, debt overhang and rampant youth unemployment continue to threaten the economic stability and social fabric of the country.

The incumbent government has embarked on a reform programme to redress the multifaceted development challenges. However, the laundry list of reforms, from privatisation to trade reforms, from exchange rates to domestic financial liberalisation, do not seem to be anchored in a broader economic strategy. Hence the tendency on the part of the government to implement all of them at the same time – dubbed a “spray-gun” approach to reforms. The pacing and sequencing of reforms are, however, critical to the success, or lack thereof, of reforms. Ethiopian policymakers need to carefully investigate what policies worked in the past, what did not and why, before they start introducing ad hoc measures to circumvent systemic problems.

Why did Ethiopia’s growth model fail to produce jobs and dollars but rather led to a massive debt burden? Since the mid-2000s, the government has made massive public investment in roads, electricity, education, etc., financed by credit from the domestic banking sector and external loans. Ethiopia has had one of the highest public investment rates in the world. These are commendable efforts and exemplary for many African countries that spend little to nothing on infrastructure and human capital. However, the government is struggling to secure foreign currency to cover even strategic imports like oil and medicine. At the same time, hundreds of thousands of graduates remain unemployed or underemployed.

It bears noting that public infrastructure is not necessarily an end in itself; it is rather a means to crowd in or foster the growth of firms that could in turn help generate jobs and dollars. In the last decade, an omnipresent state meant that the private sector remained nascent, crowded out from the credit and forex markets. Since the mid-2000s, Ethiopia pursued a model of financial repression that kept interest rates low and channeled the bulk of credit toward public investment, leaving limited space for the private sector.

While the government made critical infrastructure investments, it miserably failed when it attempted to substitute the private sector. Key state-led projects and enterprises, including sugar factories and the military-run METEC, were unproductive and led to a rapid buildup of debt. Noble prize-winning development economist Arthur Lewis said that “Governments may fail either because they do too little, or because they do too much.” Too little private investment-a key driver of growth and job creation-is one of the main reasons why the Ethiopian growth model ran out of steam in a little over a decade. Even though firms reached a point where they needed more credit than infrastructure to grow and prosper, the government continued to expand its presence in the economy, thereby becoming counterproductive.

The private sector should play a much greater role if Ethiopia is to realise its aspirations of becoming a middle-income economy. Promoting private sector-led growth would, among other things, require increasing the supply of credit and foreign currency, and alleviating other key business environment constraints, including access to land, electricity, trade logistics and a cumbersome regulatory framework.

“No country has sustained rapid growth without also keeping up impressive rates of public investment,” according to the Commission on Growth and Development that included Nobel prize-winning academics and experienced policymakers. However, the Commission also notes that “government is not the proximate cause of growth. That role falls to the private sector, to investment and entrepreneurship responding to price signals and market forces.”

Ethiopia has made only limited progress in letting markets allocate resources and promoting a thriving private sector. Similarly, it featured several of what the Commission identifies as suboptimal policies, such as excessive interference in the banking system and open-ended protection of a wide range of sectors, including through oversized state-owned enterprises (SOEs).

Fostering a vibrant private sector will require reducing and redefining the role of the state. Although there is a broad-based consensus on the need for privatisation of the SOE sector, the questions of what, when and how to privatise have been the subject of intense debate. A move from state to private, or pseudo-private, ownership alone does not necessarily and automatically yield economic gains and thus needs to be handled with the utmost care. Left to their own devices, unfettered markets could wreak havoc on the Ethiopian economy, given the private sector is too undeveloped to withstand foreign competition, the government too unprepared to effectively regulate markets, and the state too weak to provide important institutions that would enable the market to function as designed.

Privatising strategic industries and liberalising the domestic financial market at breakneck speed, just for the sake of addressing the foreign currency crunch, is a recipe for disaster. Africa’s rich experience with liberalisation reforms showed that a single-minded focus on the magic of “‘state minimalism” and “getting prices right” could do more harm than good. Growth and development require a lot more than just getting prices right. In fact, as documented in the classic works of Alice Amsden and Ha-Joon Chang, today’s advanced Asian and Western economies got rich by “deliberately getting prices wrong” and targeted state intervention in order to jump-start industrialisation and structural transformation.

Structural reforms should be done for the “right” reason, that is to improve efficiency and productivity. Nobel Prize-winning economist Paul Krugman is often quoted as saying, “productivity isn’t everything, but, in the long run, it is almost everything.”

Ethiopia’s planned privatisation and liberalisation measures should not be seen as silver bullets to solve structural problems but rather as part of a broader set of reforms to promote competition, improve economic efficiency and deter regulatory capture.

Experience shows that privatisation may be successful in a sector that is most inefficient and unprofitable but potentially a competitive industry; that has the least adverse distributional impact; and where government has adequate regulatory capabilities. In the electricity sector, profit-seeking firms do not have the incentive to serve low-income customers. In fact, privatisation of the utility sector could cause dire social consequences, unless combined with measures to mitigate adverse welfare impacts.

A great deal of caution will also be needed in the pacing of divestitures, not least because Ethiopia has very little experience to fall back on. Privatising the above-listed SOEs all at once-dubbed a “fire sale” approach-should be shunned. The government’s bargaining power, and thus the proceeds it receives, is reduced when privatisation is desperately done at a large scale within a short period.

The case of Ethiopian Airlines has been the most contested, and rightly so. There is no convincing rationale for privatising the Airlines. Ethiopian is well-managed, even by international standards, and has consistently surpassed its profit targets. Ethiopia would do well to learn from its neighbour, Kenya, whose parliament voted last month to re-nationalise its national carrier Kenyan Airways, which badly suffered in private hands.

Also, it is not wise to open the banking sector to foreign banks in the medium-term given the government regulator is insufficiently prepared. The Central Bank has been struggling to successfully discharge its basic responsibilities-notably managing the currency-let alone to effectively regulate foreign banks that come with volatile capital flows and hard-to-regulate financial instruments.

Despite theoretically sound arguments, short-term private capital flows-referred to as “bad cholesterol”-may pose substantial countervailing risks as they are often motivated by speculative considerations and thus prone to quick reversals. Many developing countries consider foreign direct investment (FDI), aka “good cholesterol,” as the private capital inflow of choice due to its resilience. Conventional wisdom suggests that low-income countries need to reach a certain level of financial and institutional development before they can start reaping the potential benefits of relatively unbridled capital flows.

As the oft-repeated adage goes, “if you fail to plan, you plan to fail.” There is hardly any time for large-scale policy experimentation and the cost of taking a wrong path could be unbearable.

How Africa Can Adapt to the Digital Revolution

The Fourth Industrial Revolution is reshaping the world of work. While policymakers in the West are struggling to respond, the task facing African governments appears even more daunting. In navigating the challenges and opportunities of the digital age, the continent’s policymakers must be willing to adapt and experiment.

Most of today’s developed countries, as well as those that transformed their economies in the second half of the 20th century, relied on export-oriented manufacturing to boost productivity and create large numbers of jobs. But robots, the Internet of Things, and 3D printing may change manufacturing so much in the coming years that African countries aspiring to follow the same path will not get the same bang for their buck, especially in terms of job creation.

Yet, these and other technologies will also offer African governments new ways to tackle social challenges and boost economic growth. For example, the use of sensors, big data, and machine learning could greatly increase the continent’s agricultural productivity. Applying artificial intelligence to personalized learning platforms could transform basic education in many African countries, where results remain poor despite increases in enrollment. And blockchain technology could facilitate transactions that require high levels of trust, such as land purchases.

African policymakers must therefore strike a balance between managing the impact of new technologies in order to benefit as much as possible from traditional manufacturing-based development models and embracing the new opportunities that stem from technological advances. Identifying the right mix of policies for each country will be critical, particularly in view of Africa’s economic, political and demographic diversity.

That said, policies that look good on paper may not have the intended effects in practice, as our experience working directly with a number of African governments over many years has shown. After all, attempts to solve complex challenges are inherently uncertain, and policy implementation may be weak.

Given the pace of change in today’s globalized world, and the urgency of the challenge posed by the Fourth Industrial Revolution, African governments need to focus as much on enabling effective policy making as they do on specific policy measures themselves. Adaptive government will be central to achieving this.

Making government more adaptive requires firms, entrepreneurs, subnational administrative bodies, public officials and civil society to develop a shared national vision for inclusive growth. This process should gather the best policy ideas, regardless of their origin, and aim to ensure that key economic actors are pulling in the same direction.

African governments should also encourage experimentation. And where policies are reversible (and many are), officials should be biased toward action. Governments should take a portfolio approach to policy making – similar to what venture capitalists do with their investments – so that successes can balance failures and provide political cover for them. To support such experimentation, governments must develop systems to monitor which policies are working well and which are not, so that successes can be scaled up.

Some African countries have already employed elements of an adaptive approach. Liberia’s government, for example, recently experimented with outsourcing school management to a number of different non-state entities, and commissioned a study to compare their performance both against one another and relative to regular state-run schools. Meanwhile, the Ethiopian government is developing a “portfolio” of industrial parks as the centerpiece of its plan to make the country an African manufacturing hub. Building the parks in different parts of Ethiopia will allow the government to spread the benefits and potential risks around the country.

To become more adaptive, African governments need to take a top-down approach to setting economic objectives and evaluating efforts to achieve them, while also providing the necessary space for experimentation and learning to allow effective policy ideas to emerge from the bottom. This adaptive approach should be underpinned by a technological focus that keeps the challenges and opportunities of the digital revolution front and center.

The outside world can play an important role in supporting African governments’ efforts to adapt. For one thing, any attempt to embrace new technologies requires super-fast, reliable and affordable connectivity – including for those at the bottom of the pyramid. Because African countries cannot shoulder the necessary investment alone, traditional donors and global tech giants alike should explore innovative financing arrangements and experiment with new technologies that can increase access.

More broadly, tech firms and other entrepreneurial organisations can play a key role in bottom-up policy experimentation. At the same time, traditional development institutions should be prepared to offer long-term support to governments that are implementing policies aimed at systemic change.

The Fourth Industrial Revolution does not mean the end of traditional manufacturing-based development models in Africa, but it will require governments and policymakers to become more innovative and experimental. They will have to rely less on detailed planning, and be increasingly prepared to try things, learn and scale up what works. Africa can find a path to the economy of the future if its governments are ready and willing to adapt.

 

Don’t Turn Back the Clock

This has been a turbulent week for the world economy. The US President Donald Trump announced via Twitter that his government would be adding a 10pc tariff to 300 billion dollars worth of Chinese goods. This is in addition to previous tariffs put on Chinese goods as part of the trade war between the two giants. Not surprisingly, China retaliated by devaluing its currency.

Soon after, the ripple effect went around the globe. Germany, which is a big exporter to China, led the adversely affected. Reports announcing downward trends in the UK and Sweden followed. Also, the slowing Chinese economy and political events in Hong Kong also contributed to the negative picture.

These events have led a significant number of economic forecasters to increase the odds of a recession hitting the world economy next year. The International Monetary Fund (IMF) released lower numbers of economic growth for this year. The IMF report cited the trade wars as harmful to the world economy and warned of the ripple effects impacting every corner of the globe. All this is injecting uncertainty into the markets. In the end, the action between only two countries, however big their economies, and decisions made by only a handful of people, however powerful, will affect the lives of billions of people all around the globe.

This goes to show how interrelated the world really is. Despite the rise of nationalistic rhetoric and the increased nationalistic fervour from the US to Europe to China, there is really no way of decoupling from the international marketplace. Whether they like it or not, countries are intertwined by mutual interests that in the long term tie all states’ destinies together.

The rise of nationalistic fervour and the desire to run away from challenging global problems is not new. In fact, the country that came out as a leader and the biggest winner in the Second World War, the United States, ironically did not want anything to do with it initially. In fact, its misguided effort to bury its head in the sand and try to avoid getting involved at any cost prolonged the war and increased the price paid by all.

The big lesson then was that the way human beings have evolved and technology has progressed meant that isolationism is practically impossible. Therefore, instead of retreating, the better answer is engagement under a carefully constructed international order.

Thus, the formation of the Bretton Woods institutions to rebuild the post-war economy and facilitate international economic cooperation on the one hand and the United Nations on the other to do the same on the political front.

That international architecture has served the world very well. There has been no world war for over 70 years yielding a relative peace dividend. There has been almost uninterrupted human progress in all measures of human development. This did not happen by accident.

It was the result of an underlying philosophy of liberalism that was based on the ideals of the brotherhood of man, the supremacy of the rule of law and collective security. It was premised on the faith that international trade with all its imperfections will bring the greatest benefits to the human race. And it has worked.

That does not mean there were no bumps on the road. There have been several challenges, but none like what we have faced since the financial crisis of 2008. The backlash at globalisation as a result of that crisis has given rise to populism and nationalism that is spreading mistrust in multilateral organisations and planting discord in the world.

This too has happened before. The first wave of globalisation was galloping full speed ahead until about 1914. The economic challenges of the time then panicked the US into passing a tariff act that kick-started retaliatory measures by the other major economic powers. That stalled the era of global trade and cooperation and ushered in an era of economic ruin that lasted for years, causing immense suffering. One can only hope that history does not repeat itself this time around.

 

Women Lead Response to Internal Displacement

As conflict erupted between the Gedeo and West Guji communities in April 2018, it was obvious that Mrs Zinash’s livelihood trading in coffee and tea in Dilla, her family’s main source of income, would be impacted. But her family’s economic losses did not stop her from hosting thousands of people who took refuge in the town, fleeing violence in their villages. She shared her family’s food with the displaced people and led resource mobilisation drives in the host community to provide them with additional food and shelter.

In another part of the country, in Oromia, Mrs. Ayantu Desta, a 33-year-old mother of three and a civil servant in West Wollega Zone, sheltered internally displaced people that fled into her community in Nedjo following inter-communal violence in neighbouring Benishangul Gumuz Region in September 2018. From her meagre resources, Desta provided water to more than 3,000 IDPs by allowing them to fetch water from her tap and covering the bills for more than six months. In addition to her personal contribution, she organised her fellow community members to collect donations to assist the displaced people.

Zinash and Desta are among hundreds of thousands of Ethiopian women on the front line providing humanitarian assistance to fellow Ethiopians affected by inter-communal conflict across the country.

Under the leadership of Prime Minister Abiy Ahmed (PhD), the Ethiopian government has been implementing bold reforms since April 2018 intending to broaden the political, civic and commercial spaces and improve the human rights landscape.

Significant successes have been achieved in this regard, including the release of thousands of political prisoners, journalists and bloggers; the decriminalisation of opposition groups; and the invitation of exiled opposition groups to return to their country and to peacefully engage in the reform process.

Despite these positive achievements, Ethiopia is facing challenges from the effects of political transition and the new experience of broadened political space. Localised inter-communal violence that has long existed in the country, significantly spiked in number, frequency and severity since September 2017, and drastically changed the humanitarian landscape of the country.

While these conflicts and displacements have significantly impacted host communities, thousands of women like Zinash and Desta in Ethiopia and around the world continue to demonstrate outstanding resourcefulness in responding to humanitarian needs in their communities.  In recognition of this, 2019 World Humanitarian Day, August 19, will be dedicated to celebrating the strength, heart and perseverance of women.

The World Humanitarian Day was inaugurated in August 2008 following the August 19, 2003, terrorist attack on the United Nations Office in Baghdad that killed 22 people. The day is dedicated to advocating for the safety and security of humanitarian aid workers, and for the survival, wellbeing and dignity of people affected by crises. This year, humanitarian partners are committed to continuing to collaborate with the people and government of Ethiopia to respond to the humanitarian needs in the country.

The government’s reforms are expected to address the root causes of recurrent inter-communal violence. However, in the immediate term, millions of conflict-affected women, men, girls and boys require life-saving assistance, as well as support for durable solutions, including return, relocation or local integration. In April 2019, the government presented a strategic plan to address internal displacement along four pillars – peace and reconciliation; rule of law; immediate relief assistance; and recovery and rehabilitation.

Of nearly 8.9 million people identified by the joint Humanitarian Needs Overview to need humanitarian and protection assistance this year, 8.3 million people in acute need are targeted for assistance, at a cost of 1.3 billion dollars. As of the end of July, not even half of it is funded.

More and urgent funding is required to ensure needs are met. As it stands, the scale and quality of the response remain inadequate due to resource (financial and human) shortfalls. In addition to IDPs, the situation of the already vulnerable host communities has also deteriorated, having shared their limited resources with the IDPs for over a year.

The still dire food and nutritional situation of millions of vulnerable Ethiopians affected by recurrent drought also requires continued humanitarian recovery and resilience-building support. Funding shortfalls have already led to interruptions or down-scaling of lifesaving interventions, particularly in the nutrition sector. The urgency of the current situation and the likelihood of a protracted and multi-dimensional crisis demands continued and adequate funding. Most of all, it will ensure that humanitarian partners are able to amplify the dedication that has been shown by Ethiopian women like Desta and Zinash.

As we mark this day and celebrate the women of Ethiopia, honouring their vast generosity and thoughtful social response to the crisis, we also urge the government of Ethiopia and the international community to further support solutions to the crisis and to address its root causes.

Change is Inevitable. Embrace it, Ethiopia

The financial sector in Ethiopia has shown growth, but as compared to regional financial institutions, in areas like resource mobilisation, profitability, creditworthiness, job creation, accessibility and innovation, there is still a lot of work to do for policy makers.

When one considers the high quality of professionalism that existed in this country both in the insurance industry and the banks, there is no doubt that the sector should be in a much better position than where it currently sits. Ethiopia used to supply financial professionals to the region 40 years ago. Those experts would have transformed the financial sector here had they not been held back by successive regimes and the wrong policies they followed.

The first roadblock was the socialist ideology the Dergueimposed on Ethiopia. That was followed by the pseudo-free market economy that was put in place by the Revolutionary Democrats. Both models could not serve to create a dynamic business environment. The former completely blocked the industry from growing, while the latter made the government the dominant player in the market by crowding out the private sector.

As an expert in the financial sector, I would argue that had private investors been allowed to operate freely without being pushed out of dynamic competition due to different political ideologies; we would have been enjoying diversified financial products from a large number of financiers and insurers, most at competitive prices.

Since Ethiopia did not follow the right policy and put in place the right framework, rules and regulations that equally applied to all stakeholders in the sector, Ethiopian financial institutions found it extraordinarily challenging to enter into regional, continental and international markets. As a result, the Commercial Bank of Ethiopia is the only Ethiopian financial institution in the top 100 of Africa’s financial institutions. The record shows that none of the insurance companies are ranked in the top 100 of African insurers.

It is clear that what started so well in the old days has not kept up with the times. We are stuck with the mentality of “the old is gold.” But the dynamism, competition and advances in technology, change the saying to “the old is old.’’ There simply needs to be change. The connotation is the ongoing changes in Ethiopia are not optional and just the result of our free will. No institute fumbling with its old success can continue in the 21st century business climate.

The question is not whether change is necessary. The question is whether the current government’s aspiration for change is deep-rooted and interlocked with the ideology of liberalisation in line with clear economic policies or not. Is there the commitment and political will to see the change through to facilitate the opening of the financial sector?

In my view, change should inevitably come to the sector. These huge financial firms have to be opened up eventually through joint venture collaborations to maximise the wealth of the nation.

Ethiopia has a large population, with the lion’s share being youth who are demanding financial services. It is a huge untapped market as compared to less populated countries in Africa such as Uganda, Kenya and South Africa, who paradoxically have more suppliers of these services than Ethiopia because of their open policies.

Now is the time to break the taboo and eradicate the fear of dynamism and competition. We have to take the bold and conscious step of change in strategy. It is time to support and encourage the leadership of Prime Minster Abiy Ahmed (PhD) to follow through with the change agenda to open up the financial sector step by step so that we can follow the regional financial institutions, continental financiers and insurers and be operators in the global markets. Change is inevitable. We should embrace it.

 

The Problem of Inefficient Workers

Procrastination is the enemy of success. And I believe this is one of the main reasons why we are poor as a nation. The country is suffocated with strategic plans that are not working or never get implemented. We have not attained prosperity in large part, because it’s just so easy to keep on postponing what needs to be done. The vast majority of our national problems come from being unable to start something and follow through.

Sometime ago one of the successful businessmen that I look up to went to China to visit. During his stay, he came across a man who described China in one word for him, which is “now”. They work and try to achieve things now as if there is no tomorrow. Truly, this is what shaped the character of China, which made them who they are today. China is proof that hard work and dedication pays off big. It was nothing but the vision to have a prosperous China that inspired them to work endlessly and become a global success phenomenon.

In Ethiopia, many believe they have a lifetime, and there is always endless tomorrow for everything. In any Ethiopian institution, it is customary to be told to come tomorrow and waste days for the work that should not take half an hour. With no accountability and with the lack of proper work structure, things fall on the goodwill of civil servants. For the most part, our leaders are also stuck in the same mindset, which makes them believe they can stay in power as long as they wish to do things in the years to come.

An occasional recognition of the need for hard work from our leaders and society is not enough to make citizens uphold the value of hard work. It requires great planning and consistency to reinforce the right mindset on work. Respecting our work and having a vision for the country should be at the heart of our national consciousness.

This can create a culture of work ethics and responsibilities for the tasks that we need to do individually and as part of society. It can teach us the benefit of learning to value and respect hard work irrespective of our political opinion and lethargic national habit.

A culture of effective work offers us a variety of benefits. Accomplishing things can provide an automatic legitimate result compared with any of the government plans and strategies that are stacked in shelves at institutions. Human beings are created with a mind to think and work. Effective work not only needs to become a habit in Ethiopia but also revered. Respecting our work begins by taking responsibilities in our activities. Doing them not because someone was checking, but because it needs to be done, should be our national value.

Once I was doing consultancy work for an international organisation that allowed me to work closely with one of the public institutions. As I was struggling to get the information that I was looking for, a man looked at me and told me something that shocked me deep into my bones. He said I should not expect them to work hard with the salaries they earn at the public institutions. Indeed, public servants are severely underpaid, and it is a miracle how they make it through this difficult life in Ethiopia’s dawdling economy. But this does not justify laziness if a person is willing to be on staff at the public institution. They must work or find something else. I was curious and asked the man if being idle while he worked was the best way out of the underpayment problem. He replied that no one would be able to hire him outside of similar institutions. I knew we were misunderstanding each other, and I thanked him and left.

What most people in Ethiopia should understand is that we work to make ourselves relevant in the job sector. This is the personal goal, while the wider goal can be to gain the necessary things for us and our country. It is when we change ourselves that we can change a country. We are hired because our skill and help are needed in the things that we do. The importance of general values and principles to relate work with personal development should not be neglected.

Lack of an institutionalised power and efficient work habit has left the country with massive poverty. It diminished the hope of having the basic things in life. A mindset of work and strong will to do things quickly remain a distant dream in Ethiopia. Reality shows us that behind our poverty is overlooked popular support that gave rise to those very same ills of ignorance and carelessness at work.

It seems like the public is used to this dangerous habit. We are always at the crossroads where we can choose what benefits us and the country, infamous for awful poverty. Thus, the dangers of having inefficient workers should not be overlooked.

Among the many paybacks, strong institutions on the economic front have a significant influence on development, creating productive human resources. This will also keep institutions accountable. But it will never come if we do not start learning from the countries that have successfully taken themselves out of poverty. Now!

WHITE PEOPLE’S DIVING PORT

Considering the high regard we attach to our culture and history, Ethiopians sure are getting the short end of the stick when it comes to representation in the international film, literature, music or performing arts scene. Neighbouring Kenya boasts a much more impressive portfolio of portrayals, at least in Hollywood, compared to Ethiopia.

We really do not have that much to show off except the likes of Shaft in Africa, that Angelina Jolie movie Beyond Borders and a mediocre Simpsons episode that features an Ethiopian restaurant in the United States. Movies such as Haile Gerima’s Teza or Yared Zeleke’s Lamb do not count in this discussion – though are far more impressive achievements – for those are Ethiopian co-productions made by primarily local effort and barely reflect just how much the international community thinks about us.

Still, there is a sense of pride in seeing our culture and history being portrayed in some nature. It is preferable had we been the focus of Out of Africa (Kenya takes that honour) instead of a lame duck movie such as The Red Sea Diving Resort. But then again, beggars cannot be choosers.

The Red Sea Diving Resort dramatises events of a major covert Israeli operation to evacuate Ethiopian Jews into Israel. Based on true events, Operation Moses and Operation Joshua, where thousands of Beta Israel refugees in Sudan were successfully evacuated in the mid-1980s, the film takes liberties to portray the whole episode into an Ocean’s Eleven type heist thriller.

It stars Chris Evans as Ari, an American Jew, who helps the Beta Israel community migrate across the Ethiopian border into Sudan with the help of Kebede (Michael K. Williams), an Ethiopian Jew himself. Ari hits an obstacle though in smuggling them out of Sudan, where they get stuck as refugees.

Back in Israel, he comes up with a fantastic idea. He manages to persuade Israeli intelligence, and a team of professionals, to help him purchase a hotel, called Red Sea Diving Resort, located close to Sudan’s coast along the Red Sea. He would use the hotel as a front to smuggle Ethiopian Jews languishing in Sudanese refugee camps.

In this politically turbulent time, it is unclear how such a plot line was able to get green-lighted. It is not so much a movie about trials faced by Ethiopian Jews in emigrating to Israel or even a dramatisation of the covert operations but a modern Israelized version of Kipling’s “The White Man’s Burden.”

To say that The Red Sea Diving Resort suffers from a white saviour complex does not do justice to the extent the movie goes to extol its white characters and almost entirely disregard its African ones. With the exception of Kebede, the latter are one-dimensional characters, without any inner conflict, used as props to look miserable and defeated. Even Kebede comes out looking much more like the “magical negro” than the filmmakers intended instead of a two-dimensional character with feelings, thoughts and aspirations that do not play directly into the heroics of Ari.

This is made all the worse by the fact that not a lot of care and research went into how the Ethiopians are portrayed. The film opens with rebels – not clear which ones these were – attacking a town where the Beta Israel lived. The scenery – dry grasses and traditional huts – suggests Northern Ethiopia, but the rebels look like they are straight out of Beasts of No Nation instead of resembling any rebel group roaming the countryside in 1980s Ethiopia.

Worse, almost all of the Beta Israel characters are played by African Americans, including Kebede. He is played by Williams (most famous for playing the cool-as-a-cucumber character Omar Little in The Wire), who has only managed to learn enough Amharic to speak it at a five-year-old’s level.

What can possibly prompt them to cast non-Ethiopians with thick American accents in Amharic-speaking roles?

After all, it is hard to imagine any self-respecting studio such as Netflix allowing the release of a movie where all the supposed French characters have thick Italian accents.

It is not the star power of the likes of Williams. They have no star power. It is that the filmmakers did not care – after all, they live in a world where the international community regularly struggles to tell whether or not Africa is, in fact, one country or not. The only people who can actually tell that none of the actors have worked hard enough to ace the accents are Ethiopians.

And they are small fish to care about. Such small fish, they do not even have Netflix.

Ban on Unlabeled Foods Despairs Manufacturers

On a sunny Thursday at the beginning of this month, dozens of people were shopping at the Shoa Supermarket on Africa Avenue (Bole Road).

Some seemed familiar with what they are buying. They just picked up food items from the display and put them in the cart.

Others glanced quickly over what was written on the package of the items before adding them to their baskets without carefully checking the item labels.

Mahder Abebe, 30, who is married with no children, and a loyal customer of the Shoa Supermarket, was one of the visitors to the supermarket on that date.

She was there buying mayonnaise, pasta, yeast and cake flavour for her household. As many were doing, Mahder was also checking the labels of the food items she was buying.

“I only see the expiry date and the country of the manufacturer,” said Mahder.

The federal Food & Drug Administration (FDA) mandates packaged food manufacturers put labels on the products with descriptions about their production date, expiry date, level of nutrients, where the product was processed and by whom.

Some items have additional labelling and packaging requirements according to the degree of safety the items require.

It also mandates that retailers only display products on their shelves that fulfill these requirements.

Mahder was not aware of these requirements, but she roughly checked the production and expiry date of the products before she decided to buy them.

Another woman, Hanna Kena, 28, who works at Cooperative Bank of Oromia, is also neither aware of the requirements nor checked the origin of the products and details of the manufacturers.

Hanna was buying bread, macchiato powder and milk powder for office use from Friendship Hypermarket, also located on Africa Avenue, close to Bole International Airport.

“I only see the expiry date and content concentration of the items,” she said. “I don’t have the habit  of checking the manufacturers’ address place or country.”

Though users are not well aware of this, there are many packaged food items in the market displayed without any labels or labels without all the required details.

In just the last fiscal year, the Ethiopian Food & Drug Administration has banned more than 103 processed food items that have been distributed in the market without the proper label descriptions.

The Administration does not know when the products joined the market but blamed a lack of required labelling as a cause for the ban.

In two rounds, the Administration announced that it has banned food items under eight categories. The banned food types include candy, honey, table salt, peanut butter, edible oil, baby food, Vimto [a sweet tonic beverage] and vinegar.

Ayu Mixed Baby Food, which has been producing food for children for the past six years, is one of the items banned by the Administration.

Ayu is one of the 369 food manufacturers registered under the Administration, which has branches in the capital as well as in Jimma, Bahir Dar, Meqelle, Kombolcha, Hawassa and Dire Dawa.

Ayesanesh Birru, the owner of the company, says that she learned of the ban on social media and did not receive any prior warning from the  Administration.

“I saw the ban on Facebook,” Ayesanesh told Fortune.

Ayesanesh says that her customers are concerned, falsely believing that products she sells are harmful. She adds that she explains to her customers what is really happening.

“Some understand us, and some don’t,” she said, “Some customers don’t trust me anymore.”

On the packaging, Ayu Mixed Baby Food lists 14 food items that the product is made from and for how long it should be boiled before use. But it does not have the origin of the product nor details of the manufacturer.

“It would have been better if the government notified us before the ban and gave us some time to improve,” she said. “It is a big crisis for us, and we don’t have a clue what to write on the package.”

After the ban, the government told the companies they require to list protein and carbohydrate concentration of the product, and they will examine their product and working environment to give them a permit to re-join the market, according to Ayesanesh.

Another company that was banned manufactures salt and vinegar. Established by five siblings, who have returned from abroad to invest in Ethiopia, the company is in the business for the past decade and a half.

“They just banned us without any warning,” said one of the owners who requested to remain anonymous. “We perform annual laboratory tests for our salt product, but they told us that they didn’t have a standard for vinegar.”

The owner explains that the Administration requires them to hire a certified salt degrader and a laboratory chemist. They were also told to prepare toilets and dressing rooms for both genders for our employees.

“How could we find a certified salt degrader? How could a small business like us hire a chemist?” she questions with frustration.

“It is very discouraging that things went against our expectations,” she adds, “My children blamed my decision to work in my country. I wouldn’t mind if this had happened to me abroad.”

The Administration still argues that the food items were banned not because they are found to be dangerous for the consumer but for failing to meet the compulsory requirements and standards.

“Even if they meet the requirement of conformity assessment,” said Betre Getahun, food institution inspection director at the Administration, “they must fulfill Compulsory Ethiopia Standard, which mandates standards for packing and labeling.”

Before issuing a certificate of competence for new businesses, the Administration checks whether the environment of the manufacturing area is suitable to manufacture food items. For example, producing food is forbidden if there is a cement factory in the area.

Standard for their manufacturing set up, the procedure the manufacturers follow when they receive raw materials and their origin, hygienic practices, their employee hiring method and some other safety issues are also examined by the Administration.

The Administration classifies food products as higher, medium and lower based on their moisture concentration and the degree of risk they might cause to the health of consumers. Milk is a high-risk food, because it cannot stay more than a week in a fridge, while dry foods are categorised as low-risk.

For manufacturers, the Authority has three categories: manufacturers with capital of 1.5 million Br are categorised as low; those with capital between 1.5 million Br and 20 million Br, as medium; while those with capital of over 20 million Br, as high.

Once companies obtain a license, their products are annually examined and checked by the Administration to ensure their consistency in meeting the Conformity Assessment Standard.

Apart from the annual checks, the Administration conducts sudden surveys when deemed necessary and receives complaints from consumers year round.

The recent ban also came after a survey that was conducted by the Administration following complaints from consumers that there are unlabeled food items in the market, according to Betre.

Ahead of the ban, the Authority had conducted a four-week survey by its inspectors at shops and supermarkets across the city. The survey showed that 80pc of the food items are circulated and distributed in Merkato, the largest market in Ethiopia.

Out of the 103 banned food suppliers, 10 came to the Administration and lodged complaints.

As of now, the Administration plans to conduct a survey every month and take the manufacturers without labels to court along with banning the products, according to Betre.

Aynadis Tamene (PhD), a lecturer and microbiologist at Addis Abeba University’s School of Food, Science & Nutrition, agrees with the Administration, saying that every food item should have the Compulsory Ethiopian Standard Authorization.

“Consumers have the right to know the concentration of the content, the place of origin and the expiry date of packaged food products,” he said.

According to him, meeting the Conformity Assessment Standard is not enough. They must also be labelled and packed consistent with the standards of the Administration.

However, Aynadis does not agree with the move of the Administration in banning the products without giving warnings to the manufacturers.

BUSING STONES

Anbessa City Bus Service Enterprise and its employees are volunteering to help build houses for weak and older adults in the Saris area of the capital. They are using this battered old bus that is no longer ferrying passengers as a dump truck to haul stones for the construction.

DRUMMING UP SALES

Street vendors in Addis Abeba tend to carry the same kind of products for a few weeks at a time. The product of the week seems to be traditional drums that sell for 100 to 150 birr each. The two boys in the picture were canvassing the Stadium area trying to drum up sales.