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Month: July 2023

Introducing the Award-winning TECNO CAMON 20 Series: The Perfect Choice for All Your Smartphone Needs.

Posted on by Web Master

In today’s fast-paced world, staying connected and having a smartphone that not only caters to your technological needs but also complements your personal style has become paramount. Look no further than the stunning TECNO CAMON 20 series – an exceptional blend of cutting-edge technology and fashionable design that has set a new benchmark in the smartphone industry. Let us take a closer look at the capabilities and design that make the CAMON 20 series the perfect choice for anyone looking for a smartphone that blends technology with design.

Finding the right device that matches your needs can be overwhelming. But not anymore as TECNO has introduced the revolutionary CAMON 20 series, a lineup designed to meet and exceed your expectations in every aspect. Whether you’re a photography enthusiast, a gaming fanatic, or an avid social media user, the TECNO CAMON 20 series is the undeniable choice for those seeking cutting-edge features and exceptional performance.

First and foremost, the TECNO CAMON 20 series features state-of-the-art camera technology that will elevate your photography skills to new heights. Equipped with an impressive 108MP AI Quad Camera, this device captures every detail with absolute precision. Each picture turns into a masterpiece, thanks to the advanced Ultra Night Lens that delivers breathtaking photos even in low-light conditions. Whether you are capturing stunning landscapes or taking awe-inspiring selfies, the CAMON 20 series guarantees professional-grade photography at your fingertips.

When you see the 20, the first thing you’ll notice is its camera module, which makes it distinct from the competition. It’s huge but designed in a way that mixes well with the geometrical pattern on the back. The smartphone has a good in-hand feel, thanks to the textured finish. It is one of the few smartphones that aren’t prone to fingerprints, smudges or dirt. The similarly colored sides on both Blue (Serenity Blue) and Black (Dark Welkin) add to the looks as well.

But it doesn’t stop there – the TECNO CAMON 20 series goes beyond expectations to offer unparalleled visual experiences. With a large 6.67-inch AMOLED display with a 120Hz refresh rate and 1080×2400-pixel resolution. every image displayed on the screen becomes larger than life. The bezel-less, full-screen display allows you to immerse yourself in your favorite content, be it movies, games, or social media. This smartphone’s display capabilities deliver vivid colors, stunning clarity, and an enhanced viewing experience that will leave you captivated.

When it comes to performance, the TECNO CAMON 20 series leads the pack. Powered by an advanced MediaTek Dimensity 8050 chipset, this smartphone runs seamless multitasking without any lags. You can effortlessly switch between apps, play graphics-intensive games, and stream high-definition videos without compromising on performance. The CAMON 20 series also comes with an 8GB RAM and up to 512GB storage, providing ample space to store all your favorite content.

Beyond its remarkable technological capabilities, the TECNO CAMON 20 series is a true fashion statement. Meticulously designed to perfection, it embodies sophistication and elegance. With a slim body and a comfortable grip, this smartphone fits seamlessly into your palm. The stylish gradient colors and appealing design ensure that the CAMON 20 series stands out from the crowd and reflects your unique taste.

Notably, the TECNO CAMON 20 series has received numerous awards including the MUSE Design Awards 2023, showcasing its superiority in the market. Recognized for its exceptional camera, stunning design, and outstanding performance, it has solidified its position as the best choice for those seeking a smartphone that seamlessly merges technology with fashion.

The award-winning TECNO CAMON 20 series is the epitome of style, innovation, and exceptional performance. With its cutting-edge camera technology, immersive display, and powerful performance, it has set a new industry standard. Furthermore, its stunning design and aesthetic appeal make it a fashion-forward choice. If you want a smartphone that combines technology and fashion effortlessly, then the TECNO CAMON 20 series is undoubtedly the best choice for you. Experience a whole new level of excellence in your smartphone journey – choose the TECNO CAMON 20 series today

CHASING DREAMS HARVESTING DESPAIR

Posted on by Tizita S.

The quest for better livelihoods has driven hundreds of thousands of Ethiopians to venture to the Middle East in hopes of better jobs. However, their journeys are often marred with abuse, maltreatment, and exploitation. Despite the hardships faced by Ethiopians abroad, the drive to migrate persists, fuelled by economic hardship and hope for a better life. While measures are being taken to regulate and improve conditions, undocumented migration remains pervasive. Reports suggest that only 40pc of Ethiopian migrants possess legal documents.

A returnee, Sara Markos now works at “Egna-Legna”, a non-profit offering skills training for returning women like her. A reflection of many such stories, Sara’s tells the plight of the 132,000 immigrants that have made the reverse journey in the past two years. A 2017 study by the International Labour Organisation (ILO) highlighted the pernicious conditions most Ethiopian migrant workers endure, particularly those ensnared by the “Kafala” sponsorship system—a framework used in Gulf countries to manage migrant workers. The system amplifies their vulnerability, leading to forced labour, withheld salaries, passport confiscations, and restricted rights to negotiate wages or switch employers. Migrant workers suffer from health problems, exacerbated by their limited access to medical care.

Federal authorities claim to have been trying to aid stranded migrants, with programmes to ensure the migrants’ reintegration into society. They speak of plans to extend support to repatriating migrants to other African countries. Yet, the drive for foreign earnings continues, with an agreement between Ethiopia and Saudi Arabia set to send a fresh wave of “trained workers” to the Middle East. The focus has been on equipping women, the primary demographic seeking employment as housemaids, with basic skills and certifications. However, this has not been devoid of criticism. While it provides a respite for the foreign exchange-strapped Ethiopia, remittance income, experts argue, is a short-term solution often used for consumption rather than investment. As Tadele Ferede, former president of the Ethiopian Economics Association, put it, remittance is a “pain killer, not a cure”. Experts argue the focus should shift to boosting agriculture, manufacturing, and domestic investments.

Where Bread Crumbles, Budgets Bulge, Growth Dreams Derail

Posted on by Tizita S.

In the colourful and vibrant Quality-Aqaqi District, a peculiar incident transpired recently. The notable Sheger Bread Factory, designed to provide millions of its fresh bread to Addis Abebans, abruptly ceased operations. A seemingly trivial event, yet it unveils a systemic flaw in Ethiopia’s economy: the persistent challenges in project feasibility and long-term public planning.

The plant’s sudden shutdown hinged on the unsustainable sourcing plan for its essential input: wheat. With the overwhelming official narrative of Ethiopia ceasing wheat imports owing to “self-sufficiency”, city officials told the plant managers to rely on domestic supplies.

This, however, highlighted an endemic issue – the disconnection of lofty ambitions and painful realities on the ground. Authorities lauded the plant’s subsidy on bread prices, a bounteous gesture to locals but economically impractical in the long run.

This case hints at a broader problem, a national inclination to herald projects divorced from local economic realities, making their eventual failure almost inevitable.

The factory’s closure is not an isolated incident, though.

Further under scrutiny is the Ministry of Irrigation & Lowlands. Its ministers recently told Parliament that only 17 of the 27 projects under their jurisdiction were progressing. The culprits, according to the officials, are a lack of funding, security issues, and contractor misfeasance.

Parliamentarians, however, dismissed these explanations as mere distractions from the core issue: poor planning. The beleaguered Omo-Curaz sugar projects launched almost two decades ago, are also seen as emblematic of public projects burdened with poor foresight.

Behind the scenes, political appointees, often bereft of experience in managing sustainable businesses, champion several such projects. The scant public records on the funding and management of these projects leave room for speculation, but it seems clear that the revenue they generate falls significantly short of their construction costs. The pageantry and publicity associated with these projects’ launches should not obscure the need for sustainable, long-term planning.

Across the country, Ethiopian farmers are growing restless over delayed fertiliser supplies. Even as authorities scramble to unload cargoes from the ports in Djibouti, their efforts are deemed too little, too late for this farming season. Farmers have already begun raiding warehouses in some places, leading to violent confrontations with local authorities.

Nevertheless, these incidents are but ripples on the surface, indicating a deeper malaise: a crisis in responsible, prudent and disciplined fiscal management. The prioritisation of the immediate over the long term is a troubling trend, potentially sacrificing rewarding future investments.

This focus on short-term gains is highlighted in the recent budget bill ratified by Parliament. The most alarming trend compared to previous fiscal years is the shift in emphasis from capital to recurrent expenditure.

In the 2023-24 budget, recurrent expenditure reached a record 370.1 billion Br (3.3pc of GDP), overshadowing capital expenditure at 203.4 billion Br (1.8pc). This all-time low for capital spending indicates a marked shift in budgetary priorities. Recurrent costs consume almost 46pc of total expenditure, while capital spending languishes at a mere 25pc.

Capital expenditure, earmarked for infrastructure projects, education, and health facilities, plays a critical role in sustaining economic growth, generating employment, and reducing poverty. These investments enhance productivity and facilitate long-term growth.

However, the recent cutback in capital expenditure suggests dwindling growth potential and raises concerns about Ethiopia’s capacity to achieve the Sustainable Development Goals (SDGs) and other long-term development objectives.

A considerable chunk of the budget – 27.8pc – is also set aside for debt servicing, highlighting the burgeoning debt burden. The looming threat of debt may sideline critical public spending in health, education, and infrastructure, undermining sustainable development and economic resilience.

Indeed, fiscal policies need to respond to immediate challenges and seize emerging opportunities. Given Ethiopia’s pressing social needs, a shift towards recurrent expenditure may seem justifiable. However, the longer-term implications of these trends should have warranted close Parliamentary scrutiny.

A pragmatic perspective might argue that Ethiopia’s approach is fiscally prudent given the challenging economic conditions. The rise in recurrent expenditure could be seen as an attempt to strengthen social safety nets and public services amidst global pandemic-related needs and domestic conflicts. The focus on roads and education, commanding 11.9pc and 9.7pc of federal government expenditure respectively, could be used as a testament to this.

The cutback in capital expenditure may be deemed a necessary short-term sacrifice, with the federal government prioritising immediate needs over long-term projects. This reasoning might provide a buffer against potential external economic instabilities as Ethiopia recovers from the pandemic’s economic shocks, geopolitical tensions and a domestic political crisis.

The balance between meeting immediate needs and securing long-term growth potential is delicate. A more proportional allocation between recurrent and capital expenditures, diversification of revenue streams, and a prudent borrowing strategy is key to traversing this fiscal maze.

And taxpayers should brace themselves. The new fiscal year will be a test. The budget heavily depends on domestic tax revenues, constituting a staggering 85pc of total revenue. The remaining 15pc, the lowest in decades, will come from non-tax revenues and grants.

Projections show an expected nine percent increase in revenue and grants, driven predominantly by a 10pc rise in tax revenue, hinting at an attempt to enhance tax collection efficiency.

However, the reliance on domestic tax may disproportionately burden low-income households, intensifying concerns about income inequality and poverty. The over-dependence on domestic tax revenue poses structural risks to the economy, making it susceptible to business cycles and economic shocks.

The forecasted budget deficit of 281 billion Br is another cause for worry. Primarily to be covered by domestic borrowing, this deficit could exacerbate Ethiopia’s debt issues and potentially trigger greater macroeconomic instability.

Persisting inflation, despite optimistic projections of a drop, remains a challenge. The history of double-digit inflation, increased recurrent expenditure, and domestic borrowing may exert upward pressure on inflation, eroding income values and exacerbating poverty.

However, the silver lining may be the projected GDP growth rate of 7.5pc. While lower than the previous years, this growth rate could potentially alleviate some of Ethiopia’s fiscal pressures if it is inclusive and broad-based. And, indeed, if it will be achieved.

Yet, no fiscal measures can substitute for professional and competent bureaucratic management. Efficiency in project planning and execution and transparency in budget distribution warrant closer scrutiny. Public funds must be used effectively for their intended purpose.

Ethiopia’s fiscal trajectory is caught between immediate socioeconomic needs and the pursuit of long-term economic development. For inclusive growth, fiscal policy should support the poor and vulnerable while fostering a conducive environment for private sector development. Navigating this predicament will require a delicate blend of prudence and strategic foresight

Forex Crunch Births Labour Mass Exodus

Posted on by Tizita S.

Sara Markos was one of the Ethiopian migrants who had gone to Lebanon with hopes of changing her life.

She had toiled for 13 years until her palms formed a rough callous texture from washing too many dishes to the point that most digital scanners can not read her fingerprints.

The mistreatment got to its peak as Sara recalls having food sent to her from an Ethiopian neighbour upstairs using a rope through her bedroom window.

“I was given a single meal a day and one tea sachet for four days,” Sara told Fortune.

The struggle continued upon her return when she discovered that her husband had remarried and used the remittance she sent to purchase real estate. Sara experienced a nervous breakdown where suicidal thoughts haunted her.

All that has passed.

Sara is now a deputy administrator at Egna Legna, a non-profit organisation that provides skills training for returning women from the Middle East. The mother of one feels to have found a purpose in her role at the foundation, helping others find a footing in their homeland.

The foundation was formed in Lebanon by 13 Ethiopian women under the leadership of Banchi Yimer in an effort to provide money and legal representation for women overseas. Egna Legna currently offers free hairdressing and sewing courses for 200 women.

“We just want our voices to be heard,” Sara told Fortune while looking at the women coming to the sewing class.

Sara’s story is a glimpse that echoes through the lives of 132,000 immigrants that found their way back home from the Middle East in the past two years.

An International Labour Organisation (ILO) study from 2017 shows that most Ethiopian migrant workers in Gulf countries (Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, Oman) are engaged in forced labour, confiscation of passports, maltreatment and withheld payment of salary.

The situation exacerbates for women who are part of the Kafala sponsorship system, a custodial framework that administers employment modalities for migrant workers in the Gulf countries where a staggering 100pc in Oman, 81.8pc in Lebanon and 75.5pc in Kuwait are employed as housemaids.

While slight differences exist in implementation between countries, the system stipulates how long a worker must serve (usually two years) before switching employment or leaving the country and entitles the sponsor to powers over visa renewals and work permits.

It closes the doors for wage negotiations and causes workers a host of health problems. Meanwhile, debt bondage, confiscation of travel and identity documents, fear of deportation, or threat of denunciation to authorities undermine the migrants’ ability to resist.

Last year’s initiative to provide humanitarian medical care in Lebanon by Doctors Without Borders recorded 7,686 medical consultations where workers suffered from diabetes, hypertension, musculoskeletal, gastrointestinal, and respiratory diseases, the largest proportion of them being Ethiopian.

In an attempt to facilitate their return, the Ministry of Women Children & Social Affairs (MOWCSA) had partnered with several international organisations.

According to Communications Officer Dereje Taye, many of the returnees had migrated from regional states without a clear understanding of what to expect. A survey revealed that 74pc of these returnees did not have their expectations met, while 89pc of them advise others not to undertake the journey.

To resettle the stranded immigrants, Dereje indicated that the Ministry ensures that they reintegrate with society while revealing that repatriating migrants to other African countries is the next phase of the program.

Unemployment and poverty lie at the heart of this trend.

Following an agreement to send hundreds of thousands of “trained workers” from Ethiopia to Saudi Arabia between the ministries of Labor of the two countries, unknown job horizons burgeon for desperate youth while lush remittance earnings make their way.

With hopes of changing the narratives associated with traffickers and dangerous routes during migration, the federal government has actively undertaken recruitment and training of blue-collar labour exports.

In line with that, the Ministry of Labor & Skills has been giving training to tens of thousands of women headed for employment in Saudi Arabia over the past five months.

According to Mulu Keneni, deputy director of the Training & Institutional Capacity Desk, a 21-day course that entails housekeeping, cooking and basic technology literacy to nearly 70,000 prospective migrant women through 77 outlets across the country.

The trainees are awarded a Certificate of Conformance (CoC) upon completing the course which is passed on to recruiters with contacts in the Gulf. Whether the time or quality of training is enough to master the skills is debatable.

“We can’t really attest to their competency,” said Mulu.

Meanwhile, business is booming for agencies that are beneficiaries of the expanded demand for Ethiopian workers from Gulf countries. The area around the agency is teeming with prospective migrants, brokers who offer easy access to passports for hefty sums and security personnel clearing away unnecessary queues.

Seid Nejnima managed recruitment agencies for the past decade. He collects a commission fee of 900 dollars from each worker going abroad through Mambo Agency.

Upon receiving the COC certification provided by centres designated by the Ministry, Seid connects with offices in Saudi Arabia or Jordan to facilitate a visa and work permits. Agencies will be liable for any costs arising from the worker leaving their assigned post in under three months.

Seid argues that problems do not arise as long as workers maintain their end of the bargain, mentioning that most of the contracts presented to the prospective women are for a period of two and a half years.

However, Seid observes in desperation to make a finer living, some opt to abandon their posts and look for employment opportunities outside their visa horizons which leads to detention and suffering.

“The training should entail what contractual obligations mean,” he told Fortune.

He stressed that the government’s active involvement will recede illegal migration for women as the demand is mostly for housemaids. However, men are likely to continue using the illegal format.

In times of economic hardship, safety has become a foreign term to those who are focused on making ends meet by any means necessary. A report by the Migration Policy Organization indicates that 126,000 Ethiopian migrants entered Yemen in 2019 alone as the war torn nation serves as a transit for entry into Saudi Arabia.

Close to 750,000 Ethiopian migrant workers are found in Saudi Arabia, of which around 65pc are likely to have used illegal means to arrive in the country, according to a report by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA).

Neither reports of death nor detention will deter the goals of women like Fozia Ahmed, who plans to start the 21-day class and be COC certified once she receives her passport.

She resides in Dessie, Amhara Regional States, and has been awaiting her passport at the Immigration Nationality & Vital Events Agency (INVEA) for the past six months. The whole endeavour is estimated to cost her 12,000 Br, which she plans to borrow from her sister, who has been working in Lebanon for the past three years.

Although Fozia has relatives that have suffered after taking similar routes, the mother of two opted to try her chance abroad, crushed by the scours of inflation and the trauma of a recent divorce.

“I’m strong enough to handle the pressure,” she said, willing to put the rest up to the higher power while anticipating work for at least three years.

Fozia has learned from numerous relatives and friends who went to the Gulf and had their money squandered. Therefore, she plans to send her earnings directly to her mother.

While women like Fozia explore legal routes to the Middle East, thousands of Ethiopians continue to trek through the Libyan desert in the hopes of crossing the Mediterranean for decent living standards.

It is estimated that only 40pc of Ethiopian migrants move with legal documents.

Indeed, Amin Mohammed, 38, who returned to his home country six months ago is looking for ways to search for greener pastures in other countries.

Although he was not forthcoming about the reasons for his return, he hinted that it was a rather dramatic exit after a decade-long work in affluent middle eastern Qatar.

While he has purchased a Toyota Vitz vehicle with his savings, the 1,500 Br daily income from providing transport services could barely cover his expenses. He claims to have been accustomed to a better lifestyle where a decent meal was afforded at a fair price.

“I find it puzzling how people on the lower economic curve manage to get by,” Amin told Fortune.

Amin is convinced that he would be an opulent man with better language skills and higher education. He believes that there is significant demand for the Ethiopian workforce in the Middle East, but underscores that some countries can be tough for migrants.

“It is a matter of chance and skill,” he said.

Contrary to repatriation, an autonomous agency Ethiopian Diaspora Service under the Ministry of Foreign Affairs is entrusted to persuade Ethiopians living abroad to come back home and invest in the country.

Wondwosen Girma, communications director, implies that a little over three billion dollars have been collected in remittance within the last three quarters of the fiscal year while conceding that a significant portion of remittance earnings is lost in parallel exchange markets.

He believes that the Ethiopian diaspora could contribute more than a remittance to the country, pointing out the large donations to state-sponsored projects such as the Great Ethiopian Renaissance Dam (GERD) and Gebeta Le Hager came from overseas.

“We implore the diaspora to import capital, knowledge and skill,” he told Fortune.

The formalisation of blue-collar labour exports to the Middle East is one of the tools at the disposal of the federal government to soothe the forex pangs through remittance, as Ethiopia’s foreign currency shortage hit new strides with the country registering 307 million dollars in forex reserve outflow during the 2020/21 fiscal year.

However, experts astutely observed that remittance income received by households is often used for short-term consumption rather than long-term investment.

Tadele Ferede (PhD), former president of the Ethiopian Economics Association, views remittance income as much like tourism; extremely sensitive to political shocks while adding minuscule long-term value.

While he acknowledged that the new training modality is a step forward in improving the skills of migrant workers, he indicated that there are loopholes in the issuance of certifications and the costly absence of supportive representatives in destination countries.

He emphasised that remittance is a temporary solution rather than a sustainable economic strategy.

“It’s a pain killer, not a cure,” he told Fortune.

Tadele, who based his observations on industrial parks, pointed out that even the packaging materials for products are imported, which he equivocates to exporting job opportunities.

He argues the focus should be enhancing the amount, quality, and consistency of production with strategic prioritisation in agriculture, manufacturing, and investment to generate foreign currency.

Over the last few decades, migration from Ethiopia has increased significantly.

Between 1941 and 1974, the number of migrants remained around 20,000. However, recent indications such as the high price of passports, which can fetch up to 100,000 Br through brokers, suggest that there is now a much greater interest.

When ‘Capital’ Ideas Turn into ‘Taxing’ Problems

Posted on by Tizita S.

The commercial banking industry finds itself ensnared in a contentious tax dispute, rooted in a recent ruling by the Federal Supreme Court in favour of the government. This has left the country’s banks poised for a financial faceoff with senior officials of the high-income taxpayers’ bureau under the Ministry of Revenues.

An unprecedented demand for back-taxes, along with interest and penalties, on previously untaxed shareholder earnings, shocked the industry leaders. They warn that this tax claim not only reaches back four years but also foreshadows a potential financial earthquake that could upset the financial sector.

The move by the tax bureau takes advantage of a ruling made by justices of the Federal Supreme Court Cassation Bench, upholding a lower court decision on a case between Tsehay Industries and the Federal Tax Appeal Commission.

A legal standoff six years ago between lawyers representing Tsehay Industries S. C. (TISC) and the Appellate Tax Commission over profit tax levied on retained earnings earmarked for reinvestment into the company as paid-up capital set the fire on.

Tsehay Industries’ shareholders increased the company’s capital to 439.5 million Br after they acquired the 1.2 million Br capital Qality Metal from the state in 2012. However, several shares remained subscribed four years later, when shareholders agreed to use part of a 48.9 million Br net profit to pay for the subscribed capital of some of the shareholders.

The company passed that year without paying dividend tax on the amount used to cover the subscribed capital. It was a decision challenged by federal tax officials in a court of law, on the ground that Article 61 of the income tax proclamation subjects undistributed dividends to 10pc tax, provided they are not reinvested. The Appellate Commission, siding with the Ministry, maintained that these profits were indeed taxable.

Justices at the Supreme Court agreed. Shareholder earnings, used to pay for subscribed capital commitments, were liable to a dividend tax.

The Ethiopian Bankers Association, chaired by Abie Sano, also president of the state-owned Commercial Bank of Ethiopia (CBE), has spent the past two months exploring ways with bankers to respond to this development. Its leaders have filed their appeal before the Ministry of Finance and the National Bank of Ethiopia (NBE), challenging the tax bureau’s demands.

“The commercial banks have been pleading with the tax officials to recognise the implications of this obligation,” said Demisew Kassahun, secretary of the Association.

The implications he referred to include a potential industry-wide shock that could undermine the banks’ capacities to compete within the sector. This financial stress comes at a particularly delicate time, with foreign banks poised to make an entry into the Ethiopian financial market. The Association’s leaders argued that the demanded taxes could dramatically diminish their financial strength.

There is a fear that this financial pressure might be too much for some banks to bear.

“Some of the banks may collapse,” reads the letter signed by Abie.

It also predicts a fierce dispute set to rise between shareholders, the government, as well as the banks’ directors and executives, highlighting that shareholders could potentially bear the ultimate brunt of this tax burden.

Almost all the commercial banks have made public offering to raise their capital base in response to a directive the central bank issued two years ago. It instructed all the banks to increase their paid-up capital to five billion Birr by 2026. However, only a few titans in the industry have managed to reach this benchmark as the deadline steadily approaches. Several are banks inching towards this goal by issuing new shares and offering existing shareholders.

The Finance Minister, Ahmed Shide, wrote a letter to the Ministry of Revenues in August last year, urging that it was within the spirit of the law to exempt dividend taxes as shareholders used these dividends to fulfil their subscribed capital. However, a legal expert at the Ministry of Revenues, Wondimu Adisse, argued otherwise. Exemptions for capital increase are permitted only if shareholders have capitalised dividends within 12 months, according to Wondimu.

“The banks’ assumption that dividends used to recapitalise subscribed capital are exempted from taxation is erroneous,” Wondimu told Fortune. “It’s assumed that they are paying off liabilities as opposed to new investment.”

The Ministry, he added, has the authority to examine taxpayers’ status and eligibility to ask for all of the duties which have not been paid.

This comes as the federal government hopes to generate a revenue of 440 billion Br in the next fiscal year, 35 billion Br higher than collected this year.

For Tadesse Lencho, a veteran expert of Ethiopian tax policy and legislation and managing partner at Tbest Law Fir, tax authorities’ demand is legally acceptable. According to Tadesse, there is no clause in the tax law indicating that exemptions are available for payments made from dividends to fulfill subscribed capital.

“The law grants the privilege of tax exemption only if the company opts to raise the capital and add it within 12 months,” said Tadesse.

Nevertheless, this decision feels like an added strain to commercial banks already grappling with mandatory bond purchases amidst a liquidity crisis. One executive from a top-performing private commercial bank said that his bank had already paid half the amount requested and plans to approach the Federal Tax Appeal Commission to negotiate the remaining balance.

Executives of Berhan Bank are gearing up to lodge a complaint to the high tax payers office to review their demands before the 30-day grace period for tax complaints concludes.

Its President, Girum Tegaye, believes the amount the Bank has been asked to pay is too high for a mid-tier financial institution, though he declined to reveal the exact figure. However, he open about the difficulty of collecting financial data spanning years back, while also trying to source the funding.

The ruling has left shareholders like Elias Negassi, who have invested in the hope of higher returns, feeling uneasy. Elias has been a shareholder at Awash Bank for two decades and owns 811 shares. He fears that the new obligations could render returns on bank shares unattractive, leading investors to favour traditional saving accounts instead.

“This is extremely discouraging,” he told Fortune.

The Cooperative Bank of Oromia (COOP) is also on standby, waiting to see if the letter sent by the Association can bring about any significant changes before its executives call an emergency meeting for its 17,000 shareholders.

Despite the legal footing of the taxation decision, financial experts caution that it needs careful scrutiny, as it threatens the viability of financial institutions. Sewale Abate, a finance lecturer at Addis Abeba University, criticized the move to levy a tax on undistributed dividends that are used to pay the subscribed capital.

“It’s like picking from their pockets,” he commented, summarising the general sentiment of a banking industry grappling with a financial conundrum that could profoundly impact the banking industry and its financial stability.

Ethio-Djibouti Corridor Teetering on the Edge

Posted on by Tizita S.

The Ethio-Djibouti corridor plagued by deteriorated road quality and security concerns has impacted the annual economic gains of the country by up to 5.6 billion Br, according to a study by Ethiopian Logistics Sectoral Association (ELSA).

While insufficiency of road networks, safety concerns and expensive maintenance was ubiquitous, some routes were cited as being uniquely dangerous to both trucks and drivers. The 143Km Dikhil to Galafi road has up to two-meter high gravel chipped off by flooding, leading to serious damage to the trucks all the while fearing for physical safety.

The study included 75 completed surveys where three-quarters of the truck owners and drivers rated the route as in terrible condition, with 55pc of the trucks facing heavy but repairable damages while 38.7pc were damaged beyond repair.

Respondents indicated the absence of parking spots led them to be exposed to violent criminals while being required to pay as much as 600,000 Br for towing services.

The staggering revelations were made during a workshop by the Association last week at the Inter-Luxury Hotel, where lively debates and arguments from both government and private actors ensued.

“The logistics sector is plagued with political infringements,” said Tsedeke Woldu, the chairperson of the Ministry Transport & Logistics Service Provision Council.

He noted that the problem goes beyond the deterioration of road infrastructure, recommending the private sector’s deep involvement as a crucial, pivotal point to diffuse logistics issues that come with political upheavals.

To that end, a shift towards more reliance on railway transport and greater regional integration was cited as essential by the Chairperson.

Over 12,000 truck drivers make the hedge to the corridors every day as landlocked Ethiopia uses Djibouti ports primarily for international trades, where more than 95pc of the country’s import-export transits.

Dereje Legesse, secretary general of the Ethiopian Transport Employer’s Federation highlighted that most operational freight trucks have been serving for several decades, barely hanging on with outdated spare parts.

He stressed that investments in freight vehicles are important indicating that informal illicit payments could cost a driver up to a million Birr on one trip.

“The revenue is basically lost on the road,” he said.

Poor infrastructure and inefficient border management have created opportunities for administrative corruption which in turn increases transaction costs and lengthens delays, according to Dereje.

The re-establishment of a new Ethiopia-Djibouti Management Authority that oversees the overall road infrastructure was applauded by logistics researcher Mathiwos Ensemu (PhD).

He outlined the possibility of a joint investment scheme through which maintenance, monitoring, and control could be done under the Authority, signalling the necessity of digitising cargo tracking, and monitoring transits and corridors.

While advancing railway operation, Mathiwos indicated the concurrent development of alternative ports.

“Looking out for other strategic ports could be of use,” he said.

The vast amount of resources required to fully address the problems in the corridor is deemed too heavy by industry insiders.

Former Deputy Head of Maritime Authority, Mekonen Abera, pointed out that transparency issues at the federal level combined with the absence of an autonomous oversight body lead to poor infrastructure.

He advised referring to long-term projections of risks and threats in the corridor completing his assessment with an impassioned declaration.

“If we say it is a priority, we need to act like it,” he said.

Freight forwarders also chimed in, expressing anguish over constant conflict and bureaucratic languish through agencies.

“The problems have gotten so much worse over the years,” said Dawit Tedla, general manager of Dolphin Transit & Shipping S.C. The Company was incorporated in 1998 with 24 million Br capital.

Commodities such as oil, wheat, and fertiliser, are robbed in plain sight while filing a police report has been uneasy, according to Dawit. He observed that the high-risk profile is causing insurance companies to shy away or demand enormous premiums.

“Their help has plummeted over the years,” he ruefully stated.

Drivers who bear the brunt of the problem indicated that the unsafe state has compelled them to look for alternative jobs.

Tesfaye Aregawi is a driver who has restricted his route from the capital to Mojo town, Oromia Regional State. The last straw for Tesfaye was a nearly fatal experience on Metehara and Welenchiti roads.

“I had to find another means for my life’s sake,” said Tesfaye.

High-ranking officials from the Transport sector acknowledged the problems cited by the private companies.

Abdulber Shemsu, CEO of the Ethiopian Maritime Authority, indicated that road infrastructure, parking lot, and security issues are being given priority by the government, noting the strategic importance of the Djibouti ports.

While Abdulber disclosed that five hectares of parking lot are being developed in Dire Dewa City, he conceded to the cumbersome task saying, “All the problems cannot be solved overnight”.

A similar sentiment was echoed by State Minister of Transport & Logistics Denge Boru, who disclosed that the 730 million dollar grant by the World Bank to revamp the Mieso-Dire Dewa route is a vital turning point to improve the logistics sector. He also advised every stakeholder to play an active role in helping the logistics sector.

Manager of the Association, Abenet Belay who has keenly observed the plights faced by the sector said that the route has no parking spaces, cafeterias or bathrooms.

“That’s basically a violation of human rights,” Abenet told Fortune.

Injera Exporters’ Woes from a Teff of Trouble

Posted on by Tizita S.

Amidst the teff price reaching an all-time high, Injera exporters are hoping for a minimum floor price adjustment to use as a springboard for increasing prices to overseas markets.

Under the Injera Bakers & Exporters Association, eight companies have reached out to the Food & Beverage Industry Research & Development Centre this March to conduct a study that considers keeping their profit margins while maintaining the relationship with international buyers.

The central bank set the price floor for Canadian and US markets to 1.20 dollars and 1.35 dollars respectively last year. However, exporters cite the skyrocketing price of teff which hovers around 10,000 Br for a quintal coupled with logistic hurdles as a ground for an adjustment.

Tewedros Asres, head of the Association, believes a floor adjustment will serve exporters engaged in cutthroat competition and focus on quality to penetrate the market.

“The price of teff has doubled since then,” he said.

The Centre conducts studies and forwards a recommendation to food and beverage industries with hopes of addressing their concerns. Considering the economic conditions and current business climate it has completed a two-month study which will be up for discussion with stakeholders this week.

According to Bekele Mekuria, general manager, the study suggests setting a price floor for countries in the Middle East and Europe which were not included before. He said the price floor should include all destinations while the amount will be based on their respective distances.

“This would help them make a profit,” said Bekele.

He believes setting a floor price for exports helps increase foreign currency earnings.

Injera exports have garnered 28 million dollars in the past eight months, according to Minster of Industry Melaku Alebel.

A quintal of Teff yields close to 800 pieces of Injera and is sold at prices depending on the quantity of order, quality of the injera and shipping costs with the United States being the number one importer.

According to data from the Ethiopian Statistics Services, over 56 million quintals of teff were harvested from 2.9 million hectares of land, with Amhara and Oromia regional states contributing more than half. The transport hurdles at the borders of the regional states were cited as a major factor for the increased price of teff in the local markets.

Solomon Shibabaw is one of the exporters who joined the business four years ago with 10 million Br capital. His company Tabsiya Food Manufacturing Plc ships up to 2,000Kg to the US market six days a week.

He claims to produce 700 pieces of Injera from a quintal and uses cargo shipments to reach distributors without compromising quality.

While he does not face a supply shortage, Solomon observes that his earnings are dwindling due to the surging utilities, labour and rental costs. He fears that the business will stop making a profit altogether if the expenses are not met with proportional income.

Economists like Alemayehu Geda do not believe the forex earnings from such exports are significant compared to other commodities.

Despite the desperate attempt to garner foreign currency, Alemayehu agrees that setting a floor price on exported items increases the amount of earnings for the federal government while helping exporters get better prices.

The exporters also voiced concerns regarding supply and foreign currency shortages and power disruption during a discussion that aimed to give platform to connect the private sector with the government officials.

A representative from the Injera Bakers & Exporters Association, Rahel Moges stressed that the recurring input shortage should be addressed by the Ministry of Agriculture officials at the event held at Skylight Hotel, Africa Avenue (Bole Road) last week.

It was organised by the Pan African Chamber of Commerce & Industry, the Ministry of Trade & Regional Integration and the Ethiopian Chamber of Commerce.

Attendees included representatives from the Ethiopian Meat Producers-Exporters and Ethiopian Pulses, Oil Seeds & Spices Processors & Exporters associations.

Lack of demand for locally processed foods, weak export market, inadequate finance, absence of modern facilities, lack of tax incentives and shortage of foreign currency were identified as hurdles during the presentation by Haymanot Tibebu, the advisor at the Pan African Chamber of Commerce & Industry.

She recommended strong public-private partnerships, particularly with food processors that add value to the products through advanced production and packaging technology.

Livestock Industry Limps Along as Ministry Attempts to Patch Up a Broken Feed Chain

Posted on by Tizita S.

Ethiopia’s livestock standards plagued by low-quality and high-priced animal feed have prompted experts at the Ministry of Agriculture to prepare a regulatory framework with hopes of increasing the feed production quality.

The new bill aims to connect animal feed producers directly with processors and exporters, while also monitoring the process through licensing. This will eliminate intermediaries and is set to remain in effect until a proclamation on the trade chain is complete.

According to Fikadu Molla, livestock & fishery output market expert at the Ministry, the multi-actor proclamation under formulation by experts from the Ethiopian Agricultural Authority, Ethiopian Cooperative Commission, Ministry of Trade & Regional Integration and the Ministry of Agriculture will provide extensive direction.

Even so, the urgent act with the directive aims to address the lingering scarcity and skyrocketing prices in the feed market.

Fiakdu indicated that exporting animal feed while failing to meet the domestic demand has exacerbated the shortage.

“The animals here are losing their lives,” he said.

However, animal production researchers such as Ewnetu Kebede (PhD), argue that export prevention does not guarantee domestic demand will be met.

Ewnetu believes the scarcity of animal feed comes from failing to address the producers while directing the focus on processing companies. He reasons that intermediaries will be abated when the feed processing companies become producers themselves.

“It’ll address both the price and the shortage,” he said.

According to Ewnetu, there is a need to invest in plots allocated to animal feed production, indicating that a lack of expertise in the sector heightens the issue. He observes that by-products from poultry farms, such as blood and eggshells that could be used as feed are being wasted for lack of awareness.

The bill proposes to certify manufacturers for their by-products and remove the needless middle players by directly connecting the producers and processors. A long-term plan by the Ministry of Trade & Regional Integration indicates establishing a sustainable supply chain by utilising agricultural and industrial byproducts.

Ethiopian Agricultural Authority controls the quality of animal feed and certifies processing companies.

Under Hamid Jemal, livestock regulatory head, the Authority plans on making certification for byproducts mandatory. Only 51 animal feed processors and four producers have gotten certified for their by-products.

Girma Negusse, an animal feed expert at the Authority, said that the ever-soaring prices of animal feed have been one of the pending bottlenecks exacerbated by illegal intermediaries disrupting the market chain.

“They are inflating the price further,” he said.

Processors concur that intermediaries have contributed to the price hike while the debilitating shortage makes it hard to meet their demand.

Incorporated in 2021, Elf Manufacturing & Commercial Processes over 18 types of animal feed on 15hct of land in Tulefa Industrial Park, the Amhara Regional State, 64Km from Addis Abeba.

With a capacity of producing up to 2500qtl of animal feed a day, the company sources maize and soybean from farmers and factories. It distributes the processed feed to unions across the country through its agents with the latest deal to spread its reach to Tigray Regional State.

Transportation costs, and shortage in raw materials, have been some of the recent challenges faced by the company, according to Biniam Dereje (DVM), marketing manager and supervisor.

Unions on the other hand resorted to opening up their own production.

Based in Mojo town, Oromia Regional State, Lume Adama Farmers Cooperative Union, had recently opened its own factory on two hectares of land, 55Km away from Addis Abeba.

The Union with 64,000 farmers under 123 cooperatives, operates a factory that produces up to 100qtl animal feed a day for nearly 900 cattle that made their way from Borena Zone, Oromia Regional State.

The Manager Kassaye Cheru, disclosed that before opening up the factory the Union used to source barely, oil-seed cake, and maize from processing factories to feed their cattle. “Other factories weren’t meeting our demands,” said Kassaye.

A study conducted by the Ethiopian Agricultural Research Institute reveals a 20pc animal feed deficit in Oromia Regional State, where the annual demand stands at 47.1 million tonnes while 35.5 million tonnes were available. The Amhara Regional State, on the other hand, falls short by 26pc where 23.6 million tonnes of feed were available.

The Southern Regional States had 17.7 million tonnes available falling 17pc short of the demand while Tigray Regional State demands 4.5 million tons to meet the 46pc gap.

Employing the livestock industry as a development engine stems from the sector’s untapped potential and the creation of diverse agro-industries along the route of commercialisation.

Despite the estimated 70 million cattle, 50 million goats, 40 million sheep and 59.5 million chickens, the country has gained 4.3 million dollars from livestock, which accounted for 0.4pc of total earnings in the first quarter of 2023.

Meanwhile, Ethiopia has generated 87 million dollars from exporting 17,000tn of meat to international markets. Both the revenue and amount had shown a 38pc and 35.2pc decline from last year where 120 million dollars from 23,000tn export was recorded.

The 10-member strong Ethiopian Meat Producers-Exporters Association Board Member Kelifa Hussien disclosed that the scarce and high-priced animal feed has impacted the export volume although the price doubled.

Livestock is indicated as a growing contributor to poverty reduction, food security, and agricultural development. It contributes 40pc of the global value of agriculture output and supports the livelihood and food security of more than 1.3 billion people.

However, local farmers are finding it difficult to sustain their livelihood where 70pc of the cost of animal production hovers around feed. Their livestock endurance in turn has been threatened leaving them stranded.

The farmer Teshome Gurmu, 59, resorted to preparing his own feed for his 10 oxen after learning the 2,050 Br price tag for a quintal. He recalled the same amount was sold for 800 Br last year.

He is a breadwinner for 11 people in the household that supports his family farming wheat, teff, and chickpeas on his 3.5hct land. However, he sees a gloomy future in the farming business as his oxen that need to be fed three times a day are becoming weary.

“They are barely fed,” he told Fortune. “I might as well look for another means of income.”

Technical Academicians Get a Foot in the Door to Advancement

Posted on by Tizita S.

Technical assistants in higher education institutions across the country foresee opportunities to advance their educational status and climb the career ladder, as Minister of Education Berhanu Nega (Prof) ushered in a new directive that looks through their rights and obligations.

Officials hope to scale up the working conditions by paving the way for benefit packages and compensation adjustments, where technical assistants will have a chance to compete and become instructors following their respective departments’ approval.

The directive entails serving a tenure of two years as a chief technical assistant and above-average scores in three-year performance are mandatory for promotion. It falls in line with overhauling the education system which has seen several reforms ever since Berhanu took the ministerial chair.

According to Chane Adefris, head of higher education affairs development, fostering quality of education and upscaling the students’ ability calls for upgrading the capacities of academics and technical assistants.

“The education system requires overall reform,” he said.

There are 7,420 technical assistants equivocal for the past few years for the unclear role they had been playing at the 47 public universities across the country.

The Ethiopian Teachers’ Association serving as an umbrella to nearly 700,000 members, had received complaints about promotions, housing benefits, and tax issues.

The Association President Yohannes Benti (PhD), believes that the directive will relieve technical assistants who remained at the bottom of the learning curve.

“Their presence was undermined,” he said.

Not long ago, a five-day strike in several universities was organised by members of the teachers and technical staff association in an effort to obtain higher wages and improved benefits packages. They claimed to have been underpaid and systematically undervalued for their efforts.

Nearly 298Km north of the capital, Debre Markos University comprises 50 assistant academic technicians. President of its 1,600 members strong Teachers’ Association Damot Anteneh (PhD), applauds the efforts by the Ministry in addressing the concerns raised by academic technicians.

He recalls the association had petitioned demands of technical assistants concerning their promotion, salary, and housing benefits, two years ago, claiming to have fiddled with the low wages and were struggling to cover their rents with a salary that averages around 7,000 Br.

“Some of the asks have found answers,” he said, citing the recent housing benefit package of 1,600 Br as one recent improvement.

The University technical staff members seem relieved by the directive that recognises their efforts.

Abatneh Tariku, a survey technical assistant in the civil engineering department, applauded the gesture as a necessary development in improving the educational career of technical assistants.

Abatneh pointed out that technical staff members were deprived of promotions, overtime payments, and opportunities to study abroad. He believes there is a wider implication of supporting technical academicians in bringing in quality education.

“I’ve always wanted to advance my degree,” he said.

Some members, however, believe pressing issues of overtime payments and promotions remain unanswered.

Selamsew Anberber, a chief technical assistant in the IT department at Gonder University.

He has worked for more than 12 years with a 7,071 Br monthly salary and does not see the light in waiting around for the empty slot in order to ask for a promotion rather than rewarding based on their own merit.

“That will make us fall under the mercy of someone else,” he said.

Experts such as Desalegn Anshiso (PhD), a human development & labour market coordinator at Policy Studies Institute, stress the importance of recognising academicians for a better educational system.

Desalegn argues that the rippled factors of the regressed education system had been seen through the lens of assistant technicians where most of the educational facilities are underequipped leaving the technical assistants hire on the basis of a theoretical background than technical skills.

The experts recommend implementing an educational reform that prioritises practical skills testing before admission to institutions.

“They need to go through a thorough examination to test their skills,” he said.

Safaricom Ethiopia’s M-Pesa Launch to Shake Up Mobile Money Status Quo

Posted on by Tizita S.

Safaricom Ethiopia readies to launch its M-Pesa mobile money service before the end of September as one of its parent companies Vodacom Group Ltd indicated through a trading update released last week.

Although an official date for the launch has not yet been disclosed, Tewedaj Eshetu, public relations & communications manager at Safaricom Ethiopia told Fortune that they are actively working on it.

“It’s clear that we have been preparing for some time now,” she said.

Shops and supermarkets across the country have been draped by promotional logos of the service over the past few weeks while the company integrates its mobile money services with commercial banks; the latest being Hibret Bank set to be announced this week.

Safaricom is the first private telecom operator in Ethiopia challenging the 128-year monopoly of state-owned telecom service after getting the first international telecom license with 850 million dollars.

It has garnered over three million subscribers in its first year. Despite having launched its telecom services in October 2022, the Company received its Payment Instrument Issuer License from the central bank two months ago through its subsidiary Safaricom M-Pesa Mobile Financial Services Plc.

“Pesa” meaning money in Swahili; M-pesa is lauded as the most successful mobile money service in Africa with over 50 million customers across seven countries while recording over 314 billion dollars worth of transactions a year.

The International Finance Corporation announced a 257 million dollar debt and equity injection in Safaricom Ethiopia last month for the expansion of its communications network.

As Ethiopia takes multiple efforts towards digitisation, a stint of public services have made digital payment method compulsatory for users.

Following the mandatory cashless transaction for fuel payments, the state-owned Ethio telecom, which provides mobile money services through the Telebirr App has seen its users grow by over eight million since January.

Izedin Ahmed who runs a small kiosk around the Jemo area in the capital is eagerly awaiting the impending launch of M-Pesa. He sees himself becoming an agent if all the services provided in neighbouring Kenya are made available.

“Everything is going digital so it’s good to have options,” he told Fortune.

In Kenya, M-Pesa quickly caught on after its launch in 2007 primarily through text message modalities. It was preferred for its ease and simultaneous accommodation of a largely unbanked segment of the population into the financial fold, with 96pc of households having a mobile money account now.

The creative use of agents that function like ATMs for receiving and depositing cash into electronic wallets has seen the service disrupt typical banking modalities and penetrate the financial sector.

However, mobile money adoption does not always have rapid absorption. Nigeria has only about half of the adult population with classical bank accounts with a mere 17pc of adults between 16-64 having mobile money accounts.

Aside from factors depending on mobile phone adoption, education and internet coverage, scepticism of technology, fraud, the tendency to spend more due to ease of access, and the temptation to be indebted were cited for shying away from the service, according to a study conducted by Emmanuel Mogaji last year.

The rapid acceleration towards digitisation has experts at crossroads.

While the majority welcome the unfolding digitisation which is occasionally compulsory, as holding great promise for the country, the absence of sufficient technical experts to regulate the digitisation of finance has raised concerns.

Nurhassen Mensur, a digital consultant active in several startups in the country over the past decade, contends that the launch of an alternative mobile money operator as holding the potential to significantly augment both the diversity and quality of financial products.

“Competition is always a win for customers,” he said.

Nurhassen sees the promise of increased national total deposits with the addition of a new operator in the country but equally recommends enhanced regulatory oversight. He emphasised the importance of enhancing the technical capacities of both the central bank and the Financial Intelligence Services (FIS) with greater financial digitisation.

“There is a proliferation of high-end financial fraud,” he told Fortune, underscoring its potential to undermine customer satisfaction.

The digital consultant surmised that the creation of a collaborative association between Ethio telecom and Safaricom Ethiopia as presenting the significant potential to exchange experiences on agent, customer and technology risks.

How AI Reshapes Our Identities, Social Order

Posted on by Tizita S.

The rapid march of artificial intelligence (AI) is not only disrupting conventional notions of work. It is also changing the essence of human identity. Whereas previous technological developments altered human behaviour and appearances, AI will fundamentally reshape individuals’ core social and political beliefs, including about the nature and role of the state.

In the 19th Century Industrial Revolution, mechanical power – mostly fueled by burning carbon – replaced human and animal power as a source of energy to be used in the transformation of nature and the production of industrial and consumer goods. As the revolution matured in the 20th Century, hard physical labour was left to only a dwindling group of occupations.

For a glimpse of most pre-industrial work, look at roofers, who today are still exhausted and worn out by toiling in the elements in uncomfortable, distorting physical positions. They are preserving in the 21st Century what was once a general experience. Early 20th-century automobile workers bent over their tools, lifted heavy objects, and applied huge amounts of energy. Their early 21st-century counterparts look at monitors and track the robots who have taken over the heavy physical tasks.

As the sweat economy has disappeared, working people have become weaker, but also healthier. Those who want to retain some physical strength now go to the gym.

The information-technology revolution represented another step in this human development. As machines have taken over more cognitive tasks, computers now monitor the robots doing the physical work. With the elimination of mental work (like the complex arithmetic that shop assistants used to perform), the same old pattern has continued: many people have stopped thinking at work and devoted those energies to crossword puzzles, sudoku, or Wordle.

Today’s revolution goes much further because it affects how collective activity is conceptualised. This development is perhaps clearest in the military, but it also has implications for political participation and our understanding of legitimate authority.

The 20th Century was marked by the most destructive wars in human history, which in turn produced a new impulse to democratise. Since soldiers and their families needed to be rewarded for their sacrifices, both World Wars led to an extension of the franchise. Classical political liberalism held that people should not be expected to sacrifice their lives for a specific political entity unless they had some say in the matter.

But technology offers a way to short-circuit this process.

Around the world, educated urban populations are increasingly not expected to engage with the brutal side of human affairs. Consider Russia. Russian President Vladimir Putin has relied on semi-autonomous mercenary groups, peripheral populations, and even prisoners to wage his war in Ukraine, because he knows that the populations of Moscow and St. Petersburg are physically and – more importantly – psychologically unsuited for the task.

This is not a new problem, of course. Before World War I, military commanders in big European countries wondered how they would field large armies, given that modern industrial life had made many recruits physically unsuited for military service. Today, military planners still harbour the same concerns.

In 2017, the Pentagon estimated that 71pc of young Americans (aged 17 to 24) were unfit for service, and since then, the share has risen to 77pc. But it has technologies that earlier generations could scarcely have imagined. War is being taken over by unmanned appliances – such as autonomous drones – just as industrial and clerical work was in earlier eras.

To understand the political consequences of the automatization of war, just consider how society overall has changed in the modern era. In medieval society, humans were generally divided into three estates: oratores, bellatores, laboratores – those who orated or prayed (the clergy); those who fought (the aristocracy); and the rest, who actually did some “work” in the form of manual labour.

It was owing to their fighting capacity that the aristocracy initially could claim massive political power. But after they stopped fighting and retired to a foppish court existence, the legitimacy of their rule vanished in a cloud of perfume. With the mass armies that followed the French Revolution, war became democratised, and so did politics. But now that war is being fought through technology, power is moving away from the people again.

What will come of the remaining social groups?

Just as the Industrial Revolution reduced the need for laboratores, the AI revolution is rendering humans obsolete in the military sphere. Like the laboratores before them, the bellatores are becoming machines. That leaves the oratores, who are tasked with preserving what is still distinctively human.

Are they, too, vulnerable to creeping redundancy and eventual existential destruction at the hands of technology?

Fearing as much, some critics and tech leaders are calling for a “pause” on AI development. But technology has never stopped simply because some people wanted it to.

 

This article was provided by Project Syndicate (PS).

Rain:The Indisputable Reflection of the Natural Cycle of Life

Posted on by Tizita S.

While strolling around Meskel Square last week, I came across a group of young men that were selling stewed corn.

Owing to the nostalgic relations of the snack with the rainy season, I went over and bought half an ear.

Corn and potatoes are signature dietary options, particularly during the rainy season in Ethiopia. They are quick and easy to make while providing a much-needed calorie at an affordable price. Corn on the cob is sold up to 20 Br for the ear.

The street vendors served it straight out of their improvised oven, wrapped in its own husk to prevent burns from the heat. The simple delicacy had a pleasant taste. While it may not be enough to fully satisfy hunger, it provides essential nutrition to ward off the chill.

Folklore has its own explanation for the start and end of the rainy season, which coincides with the September 11th Julian Calendar. Unfortunately, this day holds a tragic meaning for the United States but marks the beginning of a new year and the arrival of spring in Ethiopia.

The spring season is romanticised as a time of thankfulness that unravels a time of brightness filling the earth with tapestries of flowers and foliage whose fragrance inspires hope.

On the other hand, the rainy season which starts near July, peaks in August and lasts into early September is depicted as a time of hardship, waiting and perseverance where it becomes difficult to commute and socialise.

I observe that city dwellers are usually caught off guard whenever it rains. The unpredictable dark clouds may spell doom at any moment.

Children are spared of the effects as it coincides with their school break. It is rather a time of respite from the monotony of daily commute. However, for residents of Addis Abeba who use public transport that is riddled with overflowing demand and long queues, it brings a serious challenge.

Keeping a reliable umbrella comes in handy but they do not suffice on the worst of days when the pour teams up with strong winds and hailstorms. It demands a well-sealed pair of shoes not to feel the wetness and rough soles for a better grip on the slippery and muddy ground.

Poorly maintained house roofs start to give way to the water with pails serving as receptacles of the unwelcome intruder. I wonder how the lowest echelons of society get by with a struggle to find shelter. Having a roof over a head is given for some while it certainly is an unattainable luxury for others.

On one of those rainy days, I found myself in a popular bistro around Piassa. The rich history of the location dates back to the Italian invasion times. Although the city expanded, old Italian-style buildings and indigenous Ethiopian designs still stand. It is a gastronome paradise with notable brands such as Ristorante Castelli, Enrico Pastry, Omar Khayam, and Taytu Hotel.

The bustling Kiyab Cafe & Restaurant is one of the old heritage buildings. It features an open quadrangle design with a stairway leading to the basement lounge, complete with a small garden area.

It was crowded with people seeking refuge from the rain. The cosy atmosphere, fried potatoes aroma and hot beverages brought back fond memories of my university days.

I enjoyed the evening for a while before realising my abode was very far, and I outstayed my sojourn at the café. Nostalgia gave room to reality and I unfolded my reliable umbrella and strolled briskly to where I parked my car.

The stubborn rain, which made me barge into the café had not subsided yet.

As I drove through the Ras Mekonnen bridge towards Arat Kilo Square, my windshield wipers struggled to clear the continuous raindrops obstructing my view. The neighbourhood around me seemed frozen in time until I reached Urael Square.

The sound of the Addis rain played in the background, soothingly tapping on the windshield. Despite the inconveniences, I felt grateful for the moderate weather all year round, considering the heat wave affecting the Mediterranean regions.

I recall reading a story where a tramp, afraid of the upcoming rainy season decides to commit a petty crime intending to pass the time in the penitentiary. In a humorous turn of events, he was granted his wish and jailed after a few attempts.

As he thankfully welcomes his brief jail term a  twist of fate gets him mistaken for an escaped inmate on death row. The unfortunate man finds himself on a countdown to capital punishment pending in a few days’ time to be again rescued by yet another clever twist in the plot. He receives an innocent verdict and leaves the prison gracefully embracing the dreadful prospect of being out in the rain.

In life, we often overlook things that we should be grateful for.

Amidst the challenges, opportunities come in an agrarian nation where much of the population depends on seasonal rains for harvest. For city residents, it provides a calm space and a chance for relaxation where they spend time indoors.

The heavy rains in Addis Abeba could be seen as a blessing, considering the wide range of extreme weather conditions. Seasons come and go, like the verses of a poem, and follow the cycles of life year after year.