Hunger for Security, Thirst for Justice

Imagine the disappointment of ordering a sizzling steak and receiving a plate of lettuce. That is what I feel about the current state of affairs in Ethiopia. A chasm separates the government from the people it serves. Officials seem oblivious to the daily struggles of ordinary citizens who wrestle with fundamental needs – security, food, shelter, healthcare, and education. The harsh reality is that obtaining permits for mundane tasks feels like navigating a bureaucratic maze. Citizens should not face such hurdles for simple requirements.

The severity of the situation is undeniable. According to a 2023 UN report, nearly 70 million people in the country face inconsistent access to food, with over 25 million going hungry on some days. This raises serious ethical questions about resource allocation. Significant funds are poured into mega-projects while citizens face hunger pangs. It is troubling to witness the neglect of basic needs in favour of grandiose endeavours that do little to alleviate the immediate suffering of the population.

Lack of transparency and accountability manifests when criticism is silenced, dissent is labelled as opposition and crucial questions are met with misleading narratives. This erodes public trust and nurtures misinformation and manipulation. The suppression of artistic expression and the silencing of dissenting voices are worrying trends that demand attention.

Students who failed the grade 12 national exams highlight deeper systemic issues. The justice system also fails countless individuals. The government’s relentless targeting of street vendors stands in stark contrast to the blind eye turned towards more serious criminal activity. It offers no solace to victims like Ayantu Mustafa, who endured a brutal acid attack by her husband. Women facing violence face a similar ordeal, often left without proper justice while their attackers receive minimal repercussions compared to minor offences.

This skewed approach fails to address the real threats to societal security. The glaring discrepancy underscores the urgent need for a comprehensive overhaul of the system.

Governing a nation is undeniably complex. However, cooperation and support from its citizens are crucial for overcoming even the most daunting challenges. Rulers strive for longevity and stability. The proper way to achieve this, in my opinion, is to appease the people by providing them with what they want, at least the essentials. This strategy keeps the populace content and less likely to revolt.

However, stability is fragile and can be easily manipulated by external forces. Ultimately, what the public craves most is a foundation of security and the feeling of being cared for by their government.

Disillusionment, low morale, and a daily struggle for survival dominated the initial wave of hope and unity that swept the nation upon Prime Minister Abiy Ahmed’s promise of change. A responsive government should strive to understand the genuine needs and desires of its people to effectively serve them.

While reminders that the grass is greener on the other side might uplift morale, sometimes, all the public wants is for its leaders to accept the facts on the ground. The way forward demands an emphasis on basic problems and addressing them. Only then will the gap between rulers and ruled be bridged.

384000000

The value of goods and services exported in Sterling Pounds Ethiopia exported to the United Kingdom (UK) in 2023, which saw a 46.7pc decline from the previous year. UK’s exports to Ethiopia during the year plummeted by 61.9pc to 294 million Sterling Pounds. Ethiopia represents 0.1pc of the UK’s trade with the world.

POLYMER PASTURES

A colourful display of home plasticware is for sale near a tyre retreading plant in the Alem Bank area. Natural and synthetic rubber (Polymer) constitute the major components of the tyre manufacturing process. While Ethiopia’s southwest is suitable for rubber plantations, most tyres are imported due to the lack of intermediate processing factories. Farmers have also not adopted the practice due to small land availability and inadequate training in agroforestry techniques. Thailand, one of the largest tyre-producing nations, has close to four million hectares of land covered in rubber plantations.

 

HALLOWED GROUNDS

A gardener near the Addis Abeba Football Stadium waters the greenery around the sporting arena, which has been under renovation for nearly five years. The Stadium was built in 1940 and was home to several African Cup of Nations matches until bigger and better stadiums emerged in other countries across the continent. Under the Ministry of Culture & Sports, renovations have been significantly accelerated over the past two years, and most of the surrounding area has been cleared of makeshift shops. The Adey Abeba Stadium, located on Djibouti St. near the Haya Hulet area, has also been delayed after price surges forced contractual renegotiations with the Chinese contractor. The 62,000-seat stadium project was started in 2015, and the first phase of the project was completed for 2.47 billion Br.

BANKING VIRTUES

Awash Bank treats its customers to an Iftar ceremony at the Sheraton Addis Hotel, on Taitu St. This year, an Iftar ceremony sponsored by large companies has become usual. Fasting seasons for two dominant religions in the country have also coincided, creating a reverberating impact across the country’s socio-economy. Some food items have fallen out of favour, nighttime entertainment hot spots are subdued, and taxi service providers vanish a few hours past sundown.

South Korea Funds Land Title Digitisation in Four Cities

Four cities are selected to benefit from cadaster mapping through drone technology and integrated land title registration through a 30 million dollar pilot project kicked off last week. Hawassa, Bahir Dar, Welayta Sodo, and Adama will receive information technology infrastructure financed by a loan from the Korean Exim Bank through the Ministry of Urban & Infrastructure.

Mayors from all four cities attended the launching event and pledged to support the training of competent staff that can absorb the necessary skills to manage the database and integrated digital infrastructure under the project. State Minister for Urban & Infrastructure Helen Debebe stressed the importance of elevating standards of title deed management systems to improve service and reduce bureaucratic backlogs. She also noted that cooperation between the Ethiopian and Korean governments has historic roots and will serve as a foundation for more economic and political cooperation.

Mayor Adanech Abiebe stated that several nefarious practices historically attributed to the Land Management & Development Bureau would be resolved through the computerised system. The digitisation of more than 700,000 land titles in Addis Abeba was completed a few weeks ago, and the fully functional service is poised to open for public use this month.

Ethio-China Partnership Eyes Belt & Road Projects

A consensus to intensify efforts on key projects of road infrastructure, railway development, and agriculture was reached with a high-level Chinese delegation last week. They convened to discuss new economic cooperation initiatives, particularly focusing on Belt and Road Initiative (BRI) projects with officials at the Ministry of Finance.
Xu Jianping, head of the Chinese delegation and director general of the National Development and Reform Commission, emphasised a commitment to Ethio-China economic cooperation. He proposed the establishment of a working group to facilitate the implementation of crucial BRI projects. The outcomes of these discussions are set to be presented at the upcoming Forum on China–Africa Cooperation (FOCAC) meeting, where both parties aim to finalize agreements for signature.
Semereta Sewasew, State Minister of Finance for Ethiopia, underscored the “All-Weather Strategic Partnership” between the two countries and stressed the importance of leveraging strengths.

Insurers Join Ethiopia’s Stock Market Push

Ethiopian Securities Exchange (ESX) is picking up steam with insurers jumping on board as founding shareholders. Zemen Insurance and United Insurance have invested 20 million Br and 30 million Br respectively, setting the trend for the industry.

This move by insurers follows similar investments by prominent banks, state-owned enterprises, and investment groups. Zemen, Siinqee, Global Ethiopia, and Hibert banks have each invested 50 million Br, while Awash Bank made a substantial investment of 70 million Br. Investment Holdings and FSD Africa have also committed significant investments.

ESX is finalising its capital raising process and is on track for a September launch, buoyed by the confidence of these major institutions. Tilahun Kasahun, CEO of Exchange, signed a memorandum of understanding with the CEOs of the insurance companies last week. He applauded the investments made, particularly at a crucial juncture as Exchange finalises its capital raising process, slated for launch in September.

Inaugural Rehab Commissioner Resigns

The initial commissioner of the National Rehabilitation Commission, Teshome Toga, resigned effective March 12, 2024, citing personal matters. A former Ambassador and once speaker of Parliament, Teshome led the commission that was established in December 2022, to oversee the disarmament, demobilisation, and reintegration process of ex-combatants from regional states including Tigray, Amhara, Afar, Oromia, Benishangul-Gumuz, Gambella, and Southern Nations.
As Ethiopia emerged from one of the deadliest conflicts in recent history and faced the formidable challenge of demobilising and reintegrating a quarter of a million former combatants, Teshome was at the forefront of leading the DDR initiative estimated to cost 920 million dollars and over three years to implement.
He was replaced by Temesgen Tilahun nine days later, who previously served as a deputy commissioner of the Ethiopian Investment Commission and state minister and foreign policy advisor at the Prime Minister’s Office. The Commission gets Tesfalem Yedhadgiomn as a new logistics and administration affairs deputy commissioner. A board of five higher officials was formed to lead the commission led by Gideon Temotios, minister of justice.

Pulses Exporters Team Up with Exchange to Boost Quality

A three-year strategic plan compiled by the newly elected board of Ethiopian Pulses, Oilseeds & Spices Processors-Exporters Association pledges to address hurdles faced by exporters in the international market.

Recent discussions between the board of directors and the management team of the Ethiopian Commodity Exchange (ECX) underscored a collaborative effort to boost export quality and trade processes. Edao Abdi’s appointment follows a recent leadership change in the Association, succeeding Sisay Asmare as president. Under Edao’s leadership, the Association plans to sign a memorandum of understanding with Wondemagegnehu Negera, head of the Exchange. Wondemegegnehu emphasised the importance of modernising operations to meet both the demands of exchange actors and international trade standards, reflecting a commitment to efficiency and competitiveness.

Ministry of Trade & Regional Integration has also mandated pulses and oilseeds exporters to align their international sales contracts with purchase prices from the ECX. Officials believe the directive aims to safeguard consumers against price fluctuations and ensure fair pricing practices in international transactions.

Auditors Target Harmonised Cross Continent Standards

A unified financial reporting framework and quality assurance review standards were discussed by auditors and accountants to create specific models for African countries and ensure consistency of audition practices.

Participants from 25 African nations met at Addis Abeba’s Radisson Blue Hotel, Tito St last week, with the Pan African Federation of Accountants (PAFA) developing the review standards to ensure high-quality auditing across the continent.

“The goal is to advance the quality of accounting in Africa,” said Admire Nudurudru, head of the Public Accountants & Auditor Board in Zimbabwe.

The four-day session inspired lively debate over the complexity of auditing practices in Africa and the limited resources commonly provided for adequate analysis.

State Minister for Finance Eyob Tekalign (PhD), said a significant gap exists in the accuracy and professionalism of financial reporting within the country due to the absence of well-defined guidelines. Eyob, who also chairs the Accounting & Audit Board of Ethiopia (AABE), stressed the urgent need to enhance auditing practices and ensure the reliability of financial information.

Established two years ago, the Board has been rigorously enforcing International Financial Reporting Standards (IFRS), which became mandatory in 2022 for publicly accountable entities such as banks, insurers, and government-owned entities.